CLS buys two German properties for €49.5m

CLS Holdings said it has exchanged contracts to buy two properties in Germany for a total of €49.5m.

The first property, in Düsseldorf, is to be bought for €43.6m including costs, and generates net rental income of €3.1m, reflecting a net initial yield of 7.1%. The property benefits from a high occupancy rate and presents significant scope for future rental uplifts and other asset management opportunities, CLS said.

Harburger Ring 35, Hamburg, comprises 36,028 sq ft office space and will be bought for €5.9m including costs, and generates net rental income of €0.4m, reflecting a net initial yield of 6.4%.

The property is fully let to two public sector bodies and, being located adjacent to the group's existing property, Harburger Ring 33, CLS said it would be able to drive value by managing the combined site.

The acquisitions will be financed with existing cash resources and debt from local German lenders.