CLS has sold a portfolio of 19 regional offices in the UK to Elite Capital Partners for €76.3m (c.£65m). The offices are located across the UK outside of the South East and, following major lease re-gear last year, have less active asset management potential. The sale of the portfolio is in line with the company's strategy of actively recycling our capital and focusing the UK portfolio on London and the South East. Following the completion of this transaction, CLS will hold only two assets in the UK located outside of the South East.
The sales of 17 of the 19 offices, which are held freehold or heritable title, have simultaneously exchanged and completed for c.€73m (£62.1m). The sales for c.€3.3m (£2.9m) of the remaining two assets, which are held long leasehold, have exchanged and are expected to complete in Q1 2020, subject to the consent of the freeholder. All the offices were unencumbered at the point of sale. The portfolio comprises 618,223ft²and is 97.5% let on FRI leases to various UK Government bodies with a WAULT of 4.1 years to breaks.
Commenting on the disposal, Fredrik Widlund, Chief Executive Officer of CLS, said: “This transaction is a significant step in implementing our strategy of focusing our UK portfolio on London and the South East office markets, a region in which we remain confident of the long-term prospects. We continue to see significant opportunities for acquisitions across our core markets and this transaction will allow us to recycle capital to capitalise on those opportunities.”
