CLS has unconditionally exchanged contracts to acquire The Brix office building at Kruppstrasse 16, in Essen, Germany for €38.2 mln.
The property is a factory-style office building located in the central business district of Essen. The offices are split across five interconnected buildings ranging from three to five floors, comprising a total of 21,750 m2 of lettable space. The building benefits from two internal courtyards as well as 89 parking spaces on the estate and a further 300 nearby.
The property, which is under rented at below €10/m2/month, has a contracted rent of €1.72 mln and the purchase price represents a net initial yield of 4.2%. The building is 72% let to three tenants, anchored by Siemens which occupies the majority of the space. The unlet space provides an opportunity for CLS to refurbish and relet the vacancy to capture market rents, and once fully let the asset will have an estimated yield above 6%.
The acquisition will complete in early 2021.
Fredrik Widlund, Chief Executive Officer of CLS, commented: ‘The past year has been a challenging period but CLS has been able to acquire successfully a range of assets which provide opportunities from active asset management while bolstering the income of the portfolio.’
In 2020, CLS acquired over £200 mln of properties while disposing of £70 mln, taking advantage of opportunities presented by the current market dislocation. ‘The acquisition of The Brix is another example of CLS’ ability to source and execute deals which are complementary to the portfolio while allowing us to use our expertise to deliver further value,’ Widlund said.
