LONDON, UK: CLS Holdings has unconditionally exchanged contracts to acquire a 9,168 sqm / 98,684 sq. ft office building in Dusseldorf for €25 million (€2,724 per sqm) excluding costs from alstria office REIT-AG.
Kanzlerstraße 8 is situated in a well-connected and growing submarket in Dusseldorf. The overground station, Dusseldorf Rath, and the underground station, Rather Waldstadion, are both within 400m of the asset. The airport can be reached within 10 minutes by car and the central station in 16 minutes by overground. Dusseldorf is one of the main political, economic, and cultural centre of the Rhine-Ruhr region with a population of c. 11 million and one of the “Top 7” office markets.
The property is currently occupied by three tenants including the anchor tenant Amevida (c. 70% by space), Kinderparadies, and ConSol with a WAULT of c. 8 years. CLS plans to let remaining vacant space, enhance the carpark and ESG credentials, and manage the future lease breaks. The property currently has a net initial yield of 5.1% and a reversionary yield of 5.7%.
The acquisition is expected to complete in April 2022.
Fredrik Widlund, Chief Executive Officer of CLS, commented: “This asset is a well-located office building and benefits from an existing strong tenant base with the opportunity to secure market rents and valuation uplifts in the years ahead. This acquisition also reflects our confidence in the underlying strength of the German office market, particularly in key regional cities. We look forward to working with the tenants to improve the building further and enhancing its sustainability.”