LONDON, UK: CLS Holdings has unconditionally exchanged contracts to acquire a 23,982 sqm / 258,140 sq. ft workplace constructing in Dortmund for €66.25 million (€2,763 per sqm) excluding costs.
The property is found in a prime workplace location inside the CBD of Dortmund, subsequent to the central shopping district. The Central Station is inside 800m of the asset and the underground station Stadtgarten is solely a few hundred meters away.
Dortmund is a top 10 metropolis in Germany by inhabitants with a full workplace inventory of 3.2m sqm. It is located on the eastern side of the densely populated “Metropole Ruhr”, the third largest metropolitan space in Western Europe with a inhabitants of over 5 million people.
The property is occupied by tenants together with one of Germany’s main monetary institutions, a division of the federal state of North Rhine-Westphalia and two smaller tenants with an overall WAULT of 5.2 years. CLS plans to make investments inside the property to enhance tenant facilities and sustainability options whereas leasing the remaining vacant space. The property has a net preliminary yield of 5.1% and a reversionary yield of 5.6%.
The acquisition is anticipated to full in April 2022.
Fredrik Widlund, Chief Executive Officer of CLS, commented: “This asset is a high-quality, well-located workplace and advantages from a diversified tenant base with the chance to safe market rents and ship additional worth over the longer-term. This is our third property in Dortmund, a rising and dynamic metropolis that’s benefitting from strong workplace demand and increasing rental growth. This acquisition once more displays our confidence inside the underlying strength of the German workplace market.”
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