LONDON (ShareCast) - (Sharecast News) - Property investment company CLS Holdings has acquired an office building in Nuremberg for €18.2m, excluding costs.
CLS said on Monday that it had purchased the 5,913 square metre, four-storey office building - Georg-Elser-Strasse 7 - currently let to German telecommunications company Deutsche Telekom.

The FTSE 250 group said the site had a weighted average unexpired lease term of seven years to breaks with €1.1m net rent per year, reflecting a net initial yield of 5.8%.

CLS added that Georg-Elser-Strasse 7 would provide it with "strong, consistent income" as it added Deutsche Telekom to its tenant base.

The acquisition will be financed by CLS and Sparkasse Nürnberg.

Chief executive Fredrik Widlund said: "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."

As of 0845 BST, CLS shares were up 0.51% at 198.40p.

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