CLS’s Citadel completes Paris office/warehouse complex buy

  Citadel Holdings, a subsidiary of investor CLS, has completed its purchase of a Paris office and industrial property for €14.33m (£12.5m).   The 116,000 sq ft building at 23/27 Rue Pierre Vallette, in the Southern suburb of Malakoff, is Colt Telecom’s Data Centre and French HQ.   It produces €1.121m pa, which equates to €104 per sq m and represents an initial yield of 7.38% to CLS.    With the debt finance arranged by Crédit Foncier de France, the initial return on equity is 15.26% pa.   The property is let on an indexed lease until September 2018 with no breaks.   The building is close to the Quator office property already owned by CLS in Montrouge.   CLS executive chairman, Sten Mortstedt, said: “Positioned close to central Paris, with a strong multi-national corporation as tenant on a long term lease, this acquisition continues our investment strategy of focussing on high cash on cash returns.   “With its stable, indexed cash flows, it will be a strong addition to our portfolio.”