LONDON, UK: CLS Holdings has unconditionally exchanged contracts to acquire a 23,982 sqm / 258,140 sq. ft office building in Dortmund for €66.25 million (€2,763 per sqm) excluding costs.
The property is located in a prime office location in the CBD of Dortmund, next to the central shopping district. The Central Station is within 800m of the asset and the underground station Stadtgarten is only a few hundred meters away.
Dortmund is a top 10 city in Germany by population with a total office stock of 3.2m sqm. It is situated on the eastern side of the densely populated “Metropole Ruhr”, the 3rd largest metropolitan area in Western Europe with a population of over 5 million people.
The property is occupied by tenants including one of Germany’s leading financial institutions, a department of the federal state of North Rhine-Westphalia and two smaller tenants with an overall WAULT of 5.2 years. CLS plans to invest in the property to improve tenant amenities and sustainability features while leasing the remaining vacant space. The property has a net initial yield of 5.1% and a reversionary yield of 5.6%.
The acquisition is expected to complete in April 2022.
Fredrik Widlund, Chief Executive Officer of CLS, commented: “This asset is a high-quality, well-located office and benefits from a diversified tenant base with the opportunity to secure market rents and deliver further value over the longer-term. This is our third property in Dortmund, a growing and dynamic city that is benefitting from strong office demand and increasing rental growth. This acquisition again reflects our confidence in the underlying strength of the German office market.”