CLS Holdings completes purchase of Pacific House in Reading
CLS Holdings announced the completion of its acquisition of Pacific House in Reading - a 57,086 square foot multi-let office building - for £14.9m excluding costs on Monday.
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The FTSE 250 company said the acquisition had a net initial yield of 7.3%.
It said the building, located to the south of Reading, was 92% let to seven tenants with a weighted average unexpired lease term of four years.
The property was “well-positioned” near the M4 motorway and the planned Green Park train station, the board added.
It described Reading as an “established and growing” office market, which provided tenants with good value space.
Pacific House was currently leased at an average of £21 per square foot.
CLS said it intended to conduct a number of upgrades to the building, while focusing on leasing the remaining space in it over the coming years.
“Reading is an exciting location for offices as companies continue to look for more affordable alternatives to London,” said CLS Holdings chief executive officer Fredrik Widlund.
“It is already home to a number of blue-chip occupiers and we look forward to working with the tenants to upgrade the space in due course.
“CLS continues to focus on acquiring assets at attractive yields in the UK market with strong cash flow and diverse income streams.”