CLS Holdings to buy multi-let office building in Lille

CLS Holdings has unconditionally exchanged contracts to acquire multi-let office building, Les Reflets, in Lille, France, for €11.4m plus costs.

Les Reflets is a four-year-old building comprising 4,158 sqm (44,756 sq ft) of office space fully let to five tenants with a weighted average unexpired lease term of three and a half years. The property has an annual net rent of €769,000, reflecting a net initial yield of 6.6%.

Lille is the third largest office market in France after Paris and Lyon, with 4.4m sqm (47.4m sq ft) of office space of which only 4% is currently vacant. The city is experiencing widespread regeneration and has fast transport links to Paris and London.

Chief executive Fredrik Widlund said: "We are delighted to announce the acquisition of Les Reflets, a high quality, high-yielding office property with scope for strong returns, and which will be a valuable addition to our French portfolio.

"CLS has been active in the Lille property market for over 20 years and we believe the market fundamentals to be robust, with a shortage of office supply, extensive regeneration in the city, and an improving macro outlook in France."

Completion of the deal is expected in the first quarter of next year.

At 1100 GMT, the shares were down 0.5% to 219p.