8th Jan 2020 08:13
(Alliance News) - CLS Holdings PLC on Wednesday said it has agreed to buy an office building in Staines, near Heathrow Airport, for GBP19 million, excluding costs.
The FTSE 250-listed property investment company said the completion is planned for February 3.
The property at Twenty Kingston Road comprises 44,230 square feet of office space and has quick connections to London and Reading, as well as to Heathrow.
CLS said the building is currently let to four tenants after undergoing an extensive refurbishment in 2014. It has a net initial yield of 5.3%, increasing to 7.0% once fully let.
In addition, the company said it sold Quayside Lodge in Fulham, west London, for GBP19.0 million to a private developer.
"We continue to see a range of acquisition opportunities in the UK that are highly suited to our portfolio. Twenty Kingston Road offers strong reversionary potential with a yield of 7% once fully let and the acquisition is in line with our opportunistic approach," said CLS Chief Executive Fredrik Widlund.
"We will also continue to recycle capital, when opportunities like Quayside arise, into new investments in the UK, Germany and France," added Widlund.
CLS shares were trading 2.0% lower early on Wednesday in London at 288.00 pence each.
By Evelina Grecenko; [email protected]
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