3rd Oct 2019 08:14
(Alliance News) - CLS Holdings PLC on Thursday said it agreed to buy two office buildings in London for GBP66.7 million excluding costs.
The FTSE 250-listed property investment firm said these two properties have a blended annual passing rent of GBP4.2 million and a net initial yield for CLS of 6.2%, which will deliver a "meaningful" addition to the company's rental income, it said.
CLS said it expects completion of the transaction within four weeks. The company intends to finance the acquisition through existing resources and bank financing.
CLS said one of the properties is located on Lloyds Avenue and comprises 34,640 square feet of multi-let office space. The property is currently 82% let to 27 tenants. The asset has opportunities for CLS, it said, to utilise its active asset management approach to refurbish the space, re-let and drive rental growth.
Meanwhile, the other property, located in Hammersmith, comprises 39,626 square feet of space, which is 100% let to six tenants.
"The UK market, and particularly London, offers significant opportunities for acquisitions by well-capitalised real estate investors with these properties offering strong cashflow from a diverse range of tenants," noted Chief Executive Fredrik Widlund.
"We continue to focus on our successful strategy of acquiring properties on an opportunistic basis across the UK, Germany and France, where we can actively manage the assets to deliver income growth and value to investors," added Widlund.
CLS shares were trading 1.3% higher in London on Thursday morning at 240.00 pence each.
By Evelina Grecenko; [email protected]
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