CLS Holdings plc (LON: CLI) have today announced that it has unconditionally exchanged contracts to acquire two office buildings in London; 6 Lloyds Avenue, City of London, EC3 and the Clockwork Building, Hammersmith, W6 for £66.65 million excluding costs. The two properties have a blended annual passing rent of £4.2 million and a net initial yield for CLS of 6.2%, which will deliver a meaningful addition to CLS’ rental income. Completion is expected within 4 weeks.
6 Lloyds Avenue comprises 34,640 sq. ft (3,218 sqm) of multi-let office space in the east of the City of London near Fenchurch Street station and within walking distance of Tower Hill and Monument underground stations. The property is currently 82% let to 27 tenants with a WAULT of 2.2 years. The asset has opportunities for CLS to utilise its active asset management approach to refurbish the space, re-let and drive rental growth. It is also close to our recent acquisition at 9 Prescot Street.
The Clockwork Building, W6 comprises 39,626 sq. ft (3,681 sqm) of space which is 100% let to 6 tenants with a WAULT of 3.2 years. The building is located to the west of Hammersmith Broadway and less than a five-minute walk from Ravenscourt Park underground station.
CLS intends to finance the acquisition through existing resources and bank financing.
Fredrik Widlund, Chief Executive Officer of CLS Holdings plc, commented:
“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. 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.”