CLS Holdings (LON: CLI) has announced that it has completed the acquisition of Pacific House in Reading, a 57,086 sq. ft (5,303 sqm) multi-let office building, for £14.9 million excluding costs. The acquisition has a net initial yield of 7.3%.
The building, which is located to the south of Reading, is 92% let to 7 tenants with a WAULT of 4 years. The property is well-positioned near the M4 motorway and the planned Green Park train station. Reading is an established and growing office market which provides tenants with good value space. Pacific House is currently leased at an average of £21 per sq. ft.
CLS intends to conduct a number of upgrades to the building while focusing on leasing the remaining space in the building over the next few years.
Commenting on the acquisition, Fredrik Widlund, Chief Executive Officer of CLS Holdings, said:
“Reading is an exciting location for offices as companies continue to look for more affordable alternatives to London. It is already home to a number of blue-chip occupiers and we look forward to working with the tenants to upgrade the space in due course.
“CLS continues to focus on acquiring assets at attractive yields in the UK market with strong cashflow and diverse income streams.”