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CLS Holdings acquires Berlin and Watford offices for £55.9m

CLS Holdings has exchanged contracts to acquire two office properties in Berlin, Germany, and Watford, United Kingdom, for a combined total of £55.9m.

In Berlin, the group has bought Kaiserin-Augusta-Allee 112 & 113 for €43.5m. The asset is comprised of two adjoining building and has six storeys totalling 93,775 sq ft. It is currently 29% let following the recent departure of the previous anchor tenant. The remaining accommodation provides a WAULT of 1.9 years and €545,000 of current contracted rent.

The current occupancy and low passing rent provide CLS with an opportunity to refurbish and reposition the office and capture market rents. The building has an estimated reversionary yield of 5.6% once fully let.

The second property, Radius House, is located on Clarendon Road in Watford and was acquired from M&G Real Estate for £16.9m. The property comprises 41,226 sq. ft and is a short walk from Watford town centre and Watford Junction overground station, providing direct access to London Euston station in 16 minutes.

The building is fully let to four tenants with a WAULT of 8.1 years and an annual rent of £1.04m, reflecting a net initial yield of 5.6%. Just over half (51%) of the current income is contracted to The Secretary of State for Housing, Communities and Local Government until 2030 without break, offering secure long-term income.

Both acquisitions are expected to complete in early 2021.

Fredrik Widlund, Chief Executive Officer, said: “These acquisitions provide a combination of long-term, secure income and an opportunity to capture significant reversion through our active asset management approach. 

“CLS has remained disciplined in its approach to acquisitions but has found a few high-quality opportunities which complement the existing portfolio. Combined with our earlier acquisitions in Germany and the UK, CLS has acquired nearly £170 million of assets so far this financial year, significantly enhancing our portfolio.”

CLI : CLS Holdings acquires Berlin and Watford offices for £55.9m

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