CLS acquires Freiburg multi-let office building

28th Jun 2013 11:21

Property investment company CLS has completed the acquisition of a multi-let office building in the inner city of Freiburg, south western Germany for 13.08m euros (11.22m pounds) before costs. The company said that the fully-let building would generate rent of €1.2m per annum, giving a net initial yield of 8.75%. Debt had been provided by a regional Sparkasse lender, the company added. The building comprises lettable space of 7,135 square metres (sq m) over nine floors, including 5,127sq m of office accommodation, 1,247sq m of retail space and 761sq m of archive storage space. The six occupiers included a government department, Commerzbank and KPMG. Sten Mortstedt, Executive Chairman of CLS, said: "I am very pleased with this well located acquisition in Germany, let to some high quality occupiers, which continues our strategy of focusing on high yielding, cost effective offices with interesting management angles. I am also delighted to welcome a new lender to the group."CLS' share price was down 0.05% to 989.50p at 11:02 on Friday.MF