has unconditionally exchanged contracts to acquire Harman House
, 1 George Street, Uxbridge, for €57.4m (£51m) including costs.
The property comprises 129,060 ft² (11,990 m²) of office space arranged over nine floors which, with an occupancy rate of 98%, and currently generates an annual rental income of c.€4m (£3.52m), producing a net initial yield for CLS of 6.9%. The property has a reversionary rent profile with an estimated yield of 7.8% based on market rents.
Harman House was extensively refurbished in 2014 and has a diversified tenant base, providing a stable income from 10 tenants and a weighted average unexpired lease term of 7.9 years (or 5.8 years to first break).
The property is well-located in the town centre and adjacent to the Underground station which offers fast links into central London. Uxbridge is a well-established office location and home to a broad range of national and international occupiers.
Fredrik Widlund, Chief Executive of CLS, commented: "In line with our strategy, the acquisition of Harman House adds to our portfolio a high-yielding, multi-let office property adjacent to good transport links, and which offers a stable and diversified income stream from strong covenants. We believe there is significant scope for us to add value by capturing existing rental potential and increasing it further through asset management initiatives."
The transaction will be financed from existing CLS cash resources.