(Alliance News) - CLS Holdings PLC on Monday said that it has acquired three office properties located in greater London and the southeast region for GBP59.7 million from Aviva Investors, a part of insurer Aviva PLC.
The acquired portfolio consists of One Church road, Richmond; Priory Place, Chelmsford; and Kings Court, Leatherhead. The portfolio is 94% let and delivers GBP3.7 million net rent per annum, reflecting a net initial yield of 5.9%.
The FTSE 250-listed commercial property investor expects to finance the portfolio acquisition through existing cash resources. Completion of the deal is expected on September 28.
Chief Executive Officer Fredrik Widlund said: "This transaction further builds our presence in London and the South East, delivering attractive yields as well as opportunities to actively manage the buildings to create additional value. We have remained disciplined in our approach to acquisitions and the strength of these assets, combined with our long-term conviction in the UK market, makes this an exciting addition to our portfolio."
Shares in CLS were untraded at 207.00 pence each on Monday morning.
By Tapan Panchal; firstname.lastname@example.org
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