CLS has exchange contracts to buy a 96,948 sq ft multi-let office block in Aldgate, E1.
The group has paid £53.8m – a 4.5% yield – for the building at 9 Prescot Street, which is 100% let to four tenants with a weighted average unexpired lease term of two years to breaks.
CLS said the property had substantial reversionary rental upside to deliver an estimated yield approaching 8% through active asset management. Current contracted rental income of £2.6m equates to £26.41 per sq ft. CLS said it intended to undertake a substantial refurbishment to “deliver high-quality space in an improving area with limited supply”.
The purchase is being financed through existing resources and bank financing.
Chief executive Fredrik Widlund said: “This acquisition is a clear demonstration of our ability to undertake transactions on an opportunistic basis where we can utilise our asset management expertise to deliver value over the long term in line with our strategy. The property’s excellent location and attractive potential makes this an exciting acquisition for CLS.”
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