CLS Holdings Plc (LON:CLI) announced that it has unconditionally exchanged contracts to acquire Les Reflets, 15 Rue Jean Walter, Lille, France, for a consideration of €11.4 million plus costs. Completion is expected in the first quarter of 2019.
Les Reflets is a four-year-old multi-let office building located in the south of Lille, comprising 4,158 sqm (44,756 sq ft) of office space fully let to five tenants with a WAULT of 3.5 years. The property has an annual net rent of €769,000, reflecting a net initial yield of 6.6%.
Lille is the third largest office market in France after Paris and Lyon, with 4.4m sqm (47.4m sq ft) of office space of which only 4% is currently vacant. The city is experiencing widespread regeneration and has fast transport links to Paris and London.
Fredrik Widlund, Chief Executive of CLS, commented:
“We are delighted to announce the acquisition of Les Reflets, a high quality, high-yielding office property with scope for strong returns, and which will be a valuable addition to our French portfolio.
“CLS has been active in the Lille property market for over 20 years and we believe the market fundamentals to be robust, with a shortage of office supply, extensive regeneration in the city, and an improving macro outlook in France.”