CLS acquires five properties for £31m

11th Jan 2017 08:20

(ShareCast News) - CLS Holdings announced on Wednesday that it has acquired five properties in the UK from a private investor for £31.4m, including costs, generating rents of £2.5m per annum from 10 tenants and representing a net initial yield of 8%.The FTSE 250 company said the properties are freehold, have an aggregate office area of 107,000 sq ft and a weighted average unexpired lease term of 4.4 years.They comprise 45 London Road, Reigate RH2; Harlequin House, 7 High Street Teddington TW11; Heather Court, 6 Maidstone Road, Sidcup DA14; St Cloud Gate, Maidenhead SL6; and Unit 2500, The Crescent, Birmingham Business Park B37.CLS said the portfolio offers a number of opportunities to work with existing and potential new tenants, as well as development potential.Its board confirmed the acquisition was financed from existing funds."We are delighted to have acquired these properties, which play to the group's strengths, provide strong asset management opportunities in the short to medium-term, and add significantly to the group's cash flow," said CLS chief executive Fredrik Widlund."The transaction underlines our continued commitment to, and confidence in, the UK economy, particularly in the South East."