CLS Holdings has announced that it has unconditionally exchanged contracts to sell Albert-Einstein-Ring 17-21 in Hamburg for €36.45 million excluding costs, with completion expected on 30 September 2020.
About Albert-Einstein-Ring
Albert-Einstein-Ring 17-21 was acquired by CLS in 2017 as part of the Metropolis portfolio and consists of 13,419 sqm (144,441 sq. ft) of offices located in the Bahrenfeld area of Hamburg. CLS says that, while the property offers long-term potential as the area and public transport are improved over the coming decade, it is currently experiencing higher levels of vacancy and therefore no longer meets its portfolio criteria. The sale, at a price 38% above the 31 December 2019 valuation, reflects a net initial yield of 3.6%. CLS says that this allows it to crystallise the future potential of the building and area today, and it can redeploy funds into more immediate opportunities.
Hamburg is still a key market
Fredrik Widlund, Chief Executive Officer of CLS, sys “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.”