CLS takes two in Hounslow

Posted on by John Cronin

Commercial property investors CLS Holdings plc has announced the purchase of two adjacent office blocks in Hounslow.

Falcon HouseCLS Holdings (CLS) has completed a £5.5m acquisition of the two office buildings on Staines Road, Hounslow. Falcon House (pictured) and Quest House are both multi-let to a range of blue-chip tenants.

Falcon House is a modern, five-storey office building with floor plates of between 6,183 sq ft to 10,263 sq ft. Total floor space is 25,036 sq ft. One floor of the building remains unoccupied.

Quest House, previously known as Nixdorf, is a 1970’s, five-storey building offering total floor space of 25,584 sq ft. The building is currently running at full occupancy. Previously quoted rental prices have been £15 / sq ft and current rental income equates to an average of £13.95 / sq ft. The building is multi-let on 5-year leases. Tenants at the offices include airlines Aer Lingus and Alitalia and network provider Telefonica O2.

The two Hounslow offices were part of a larger property portfolio managed by Glebe Holdings. Glebe also owns Ashley House in Hounslow, a mixed-use retail and office building totalling just over 18,100 sq ft. One suite of 440 sq ft remains unoccupied with short-term lease agreements available.

Commenting on the acquisition, Sten Mortstedt, Executive Chairman of CLS Holdings plc, said: “[This acquisition continues] our strategy of focusing on high yielding, cost effective offices that provides us with reliable diversified cash flow from solid tenants. Being well financed places us in a very strong position to take advantage of the current market conditions for this type of acquisition”.

Last November CLS purchased a second office building in New Malden for in excess of £21m.

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