CLS Holdings buys Bracknell office property for £14.7m
CLS Holdings has acquired Columbia Bracknell, a multi-let office property in Bracknell, Berkshire, for £14.7m excluding costs, it announced on Thursday.
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The FTSE 250 firm said the property comprises 54,291 square feet of office space which, with an occupancy rate of 79%, currently generates an annual rental income of £0.88m, and a net initial yield of 5.6%.
Once fully let, it is expected to produce £1.17m per annum, reflecting a net initial yield of 7.5%.
CLS said Columbia Bracknell had been “extensively refurbished” throughout, and now has a diversified tenant base, providing a stable income from 10 tenants and a weighted average unexpired lease term of 3.1 years.
It said it is well-located between the main railway station and the town centre, which has recently undergone a £240m regeneration.
The transaction would be financed from existing CLS cash resources.
“The acquisition of Columbia Bracknell is consistent with our strategy of investing in multi-let, high-quality offices in and around major cities across our three core markets: the UK, Germany, and France,” said CLS chief executive Fredrik Widlund.
“This acquisition complements our existing portfolio and offers several opportunities for us to add value through active management and to significantly increase the occupancy rate.”