CLS Holdings has acquired two adjacent multi-let office buildings in Hounslow, West London for £5.5m.
CLS has bought the 50,500 sq ft Falcon House and Quest House, at 115-135 Staines Road, where tenants include Aer Lingus, Alitalia, Telefonica O2, Vandemoortele, First Rate Exchange Services and Quest Diagnostics.
The total initial rent is £582,091, giving a yield after costs of 10.1% rising to £627,562 in 11 months (after fixed rental uplifts) and a yield of 10.9%.
CLS executive chairman Sten Mortstedt said: “I am delighted with this acquisition, which continues our strategy of focusing on high-yielding, cost-effective offices that provides us with reliable diversified cash flow from solid tenants.
“In addition there are a number of interesting asset management opportunities over the coming years. Being well financed places us in a very strong position to take advantage of the current market conditions for this type of acquisition.”
Philip Hunt Associates and De Souza & Co advised the vendor; CLS was unrepresented.
Nick.whitten@estatesgazette.com
