Release date: 1 June 2020
Embargoed until: 07:00 am
CLS Holdings plc ("CLS")
announces the acquisition of Georg-Elser-Strasse 7 in Nuremberg
CLS announces that it has acquired Georg-Elser-Strasse 7, Nuremberg for €18.2 million excluding costs.
Georg-Elser-Strasse 7 was built in 2014 and is a modern, four-storey office building comprising 5,913 sqm (63,647 sq. ft) of space fully let to leading German telecommunications company, Deutsche Telekom. The building is well located in Hansapark, a business park near the Telecommunication Tower in the south-west of Nuremberg, the second largest city in Bavaria after Munich. The building is close to Hohe Marter underground station which provides fast access to both the central station and Nuremberg airport.
The asset has a WAULT of 7 years to breaks with €1.1 million net rent per annum, reflecting a net initial yield of 5.8%. The building will provide strong, consistent income for CLS, adding Deutsche Telekom to its tenant base which was 48% let to governments and major corporations as at 31 December 2019.
The acquisition will be financed by CLS and Sparkasse Nürnberg.
Fredrik Widlund, Chief Executive Officer of CLS, commented:
"This deal brings another compelling property and an exceptional tenant to the CLS portfolio. The long lease remaining on the building will give consistent income at a strong yield, while allowing us to explore ways to deliver further value over the longer-term. Nuremberg is an exciting and growing city for business and the asset's quality and proximity to key transport links will ensure it remains an attractive proposition."
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For further information, please contact:
CLS Holdings plc
(LEI: 213800A357TKB2TD9U78)
Fredrik Widlund, Chief Executive Officer
Andrew Kirkman, Chief Financial Officer
+44 (0)20 7582 7766
Liberum Capital Limited
Richard Crawley
Jamie Richards
+44 (0)20 3100 2222
Whitman Howard
Hugh Rich
+44 (0)20 7659 1261
Elm Square Advisers Limited
Jonathan Gray
+44 (0)20 7823 3695
Smithfield Consultants (Financial PR)
Alex Simmons
Rob Yates
+44 (0)20 3047 2546
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