CLS has bought an office complex in Vanersborg, Sweden, for about £38.5m on an initial yield of 10.3%.
Vanerparken – a 45,150 sq m (485,990 sq ft) complex on a 28.8acre (11.66ha) site – also features leisure, medical and educational uses. Some 87% of its income is secured until 2015 against leases to the local county council and the Swedish government which occupy most of the building. Total net rent from the property is £3.85m (SEK 50.7m).
Around 1.61ha (4 acres) of the site is undeveloped and planning consent has been granted for further office space and a residential scheme fronting a nearby lake.
Some £3.6m in cash was invested by CLS in the purchase and it has fixed long-term funding on a non-recourse basis at 5.8% for £34.7m (SEK 460m). According to a spokesman for CLS, this will provide a return on equity of approximately 48% pa.
The site was sold by NCC, one of the Nordic region’s leading construction and real estate companies.
Vanersborg is known as an affluent residential area and is some 100km north of Gothenburg. The nearest towns are Trollhattan and Uddevalla.
EGi News 24/09/98
