CLS Holdings to buy Staines office space for £19m

CLS Holdings said on Wednesday that it had agreed to buy an office space in Staines for £19m.

The company has unconditionally exchanged contracts to buy 'TWENTY' Kingston Road, which comprises 44,230 sq ft of grade A, multi-let office space. The building is a short walk away from Staines train station, which has quick connections to London and Reading. Heathrow Airport is a short drive away.

The asset is currently let to four tenants with a weighted average unexpired lease term of 5.4 years to breaks. It has a vacancy of 23% and a net initial yield of 5.3%. CLS said the space underwent an extensive refurbishment in 2014.

Chief executive officer Fredrik Widlund said: "We continue to see a range of acquisition opportunities in the UK that are highly suited to our portfolio. TWENTY Kingston Road offers strong reversionary potential with a yield of 7% once fully let and the acquisition is in line with our opportunistic approach.

“We will also continue to recycle capital, when opportunities like Quayside arise, into new investments in the UK, Germany and France."

Completion of the acquisition is expected to take place on 3 February.