CLS Holdings PLC on Thursday said it purchased an office building in Dusseldorf from alstria office REIT-AG for €25 million, reflecting a net initial yield of 5.1%.

The London-based commercial property investor said it had unconditionally exchanged contracts to acquire the 98,684 square feet building.

It is currently being occupied by three tenants with a weighted average unexpired lease term of eight years.

The tenants are Amevida SE, which owns around 70% of the space, Kinderparadies GmbH, and ConSol Software GmbH.

CLS said it is planning to enhance the car park, the environmental, social, and governance credentials, and manage future lease breaks.

The company said that it expects the acquisition to be completed in April.

‘This acquisition also reflects our confidence in the underlying strength of the German office market, particularly in key regional cities. We look forward to working with the tenants to improve the building further and enhancing its sustainability,’ Chief Executive Fredrik Widlund commented.

Shares were down 0.4% at 212.55 pence each on Thursday morning in London.

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