CLS has exchanged contracts to acquire three office properties in Greater London and the South East, for €64.6m (£59.7m) excluding costs from Aviva Investors. 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 46,995ft² office building is multi-let to four tenants. Priory Place is a 41,036ft² 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 30,759ft² 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 €4m (£3.7m) net rent per annum, reflecting a net initial yield of 5.9%. There are significant opportunities to add further value through additional refurbishments, sustainability enhancements and other active asset management initiatives which will continue to drive further rental growth. CLS intends to finance the acquisition through existing cash resources with completion expected 28 September.
Fredrik Widlund, Chief Executive Officer of CLS, commented: “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.”