CLS Holdings announced it has agreed to acquire three office properties in Greater London and the South East from Aviva Investors for £59.71 million.
The portfolio consists of One Church Road, Richmond; Priory Place, Chelmsford; and Kings Court, Leatherhead. One Church Road is located adjacent to Richmond Station, providing fast access to several commuter hubs including Clapham Junction and London Waterloo, and benefits from car parking and bike storage spaces. The 46,995 sq. ft (4,366 sqm) office building is multi-let to four tenants.
Priory Place is a 41,036 sq. ft (3,812 sqm) building located in the centre of Chelmsford, the principal commercial town in Essex. The asset is in close proximity to Chelmsford Station, enabling a 30-minute train journey to Liverpool Street Station, and benefits from 80 car parking spaces. Priory Place is currently multi-let to five tenants with a significant proportion of the building let to HM Courts & Tribunals Service.
Kings Court is located in central Leatherhead, an eight-minute walk from the station, with a direct train line to London Waterloo and London Victoria stations and comprises 30,759 sq. ft (2,858 sqm) of office space. The three-storey building is let to two tenants and has 166 car parking spaces along with bike storage.
The portfolio is 94% let with a WAULT of 3.8 years to breaks and delivers £3.7 million net rent per annum, reflecting a net initial yield of 5.9%.
“This transaction further builds our presence in London and the South East, delivering attractive yields as well as opportunities to actively manage the buildings to create additional value. We have remained disciplined in our approach to acquisitions and the strength of these assets, combined with our long-term conviction in the UK market, makes this an exciting addition to our portfolio,” said Fredrik Widlund, Chief Executive Officer of CLS.
