24th Jul 2020 09:48
(Alliance News) - CLS Holdings PLC on Friday said it has exchanged contracts to sell Albert-Einstein-Ring 17-21 in Bahrenfeld, Hamburg, for EUR36.5 million excluding costs.
The FTSE 250-listed western Europe-focused property investor said the sale of the property which consists of 13,419 square metres of offices is expected to complete on September 30.
CLS acquired Albert-Einstein-Ring as part of the Metropolis portfolio in 2017. However, it said that while the property offers long-term potential as the area and public transport will improve over the coming decade, it is currently experiencing higher levels of vacancy and no longer meets its portfolio criteria.
"Whilst Hamburg remains one of our key markets, this disposal captures value for our investors today and releases capital that can be recycled earlier into opportunities with a better income profile. We continue to see exciting opportunities in our key markets and strongly believe in the resilience and attraction of well-located, affordable offices in non-prime locations," said Chief Executive Fredrik Widlund.
The sale price is 38% above the valuation as at December 31, reflecting a net initial yield of 3.6%.
Shares in CLS were trading 0.4% higher at 194.20 pence each on Friday morning in London.
By Ife Taiwo; [email protected]
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