20th Feb 2019 08:25
LONDON (Alliance News) - CLS Holdings PLC said on Wednesday it has agreed to acquire an office property in Aldgate, east London for GBP53.9 million.
The property at 9 Prescott Street comprises 96,948 square feet over seven floors and is currently let to four tenants with a weighted average unexpired lease term of 2 years to breaks.
The property has a current contracted rental income of GBP26.41 per square feet, and CLS will look to undertake substantial refurbishment of the asset. The acquisition has a net initial yield of 4.5%, it said.
The property investment company will finance the acquisition through its existing resources and funding from banks.
"This acquisition is a clear demonstration of our ability to undertake transactions on an opportunistic basis where we can utilise our asset management expertise to deliver value over the long term in line with our strategy. The property's excellent location and attractive potential makes this an exciting acquisition for CLS," said Chief Executive Fredrik Widlund.
Shares in CLS Holdings were down 0.6% at 236.50 pence on Wednesday.
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