16th Sep 2013 11:31
LONDON (Alliance News) - Property management company CLS Holdings PLC Monday said it has acquired 34 properties, which are primarily UK government-occupied, for GBP118.6 million, excluding costs of GBP5.3 million.
CLS said the purchase of four long-leasehold properties in the portfolio with an aggregate value of GBP12.7 million is conditional on gaining landlord's consent.
The firm said 78% of the rental income from the portfolio comes from UK government bodies, including HM Revenue & Customs and the Department for Work and Pensions, while 20% is receivable from property outsourcing company, Trillium Property GP Limited, which provides services to government.
The portfolio generates, net of ground rents, a rental income of GBP15.1 million per annum, of which 66% is index-linked. It also had a weighted average lease term of 7.2 years, or 4.8 years to the first break, and provides a net initial yield after costs of 12.23%.
The portfolio, which is 99% let, was purchased through FRP Advisory LLP in its capacity as receiver for certain subsidiaries of Wichford PLC.
CLS shares were trading at 1,181.00 pence Monday morning, up 22.00 pence, or 1.9%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
CLS Holdings