CLS Adds to French Portfolio

LONDON-CLS Holdings, the UK-based European property investment group, has added ten more suburban office properties to its French portfolio. It has paid Banque Hervet €42.525 million ($42 million) for the properties, which are all located in established office areas of various Parisian suburbs.

The buildings total 194,413 sf and are let to 57 different tenants with a vacancy rate of 2.6%. The rental income from the properties is €3,663,790 ($3.63 million) and there is a significant reversionary element according to the company. The purchase price represents an initial yield of 8.6% and after lease restructuring this is expected to rise to 9.25%.

Executive Chairman, Sten Mortstedt, said:”I am pleased that we are continuing to find good investment opportunities generating good returns and that we have been able, through active asset management, to realise some of the reversionary value in our portfolio, thus enhancing asset values.”

L’Etoile Properties advised CLS.