CLS leases 17,400 sqm for 30 years in Essen, Germany.

CLS announces that it has signed a 30-year lease with the City of Essen (the “City”) at The Brix, Kruppstrasse 16, Essen for 17,400 sqm (187,292 sq. ft). The lease also benefits from being index linked.

Located in the central business district, The Brix offers an exceptional location with superb access to local and regional transportation networks. The property is situated just 500 meters from Essen’s central train station and close to several major roads connecting the Ruhr area. Essen, known as one of Germany’s greenest cities, has attracted substantial investment in infrastructure, culture and education in recent years.

As part of the Group’s Sustainability Strategy, and in agreement with the City, CLS will spend €20 million over the next three years to substantially improve the building. This ambitious project will include a host of energy efficiency, sustainability, and wellbeing initiatives, providing the City with high quality and flexible workspace, in compliance with the EU taxonomy.

The current occupier’s tenancy agreement will end on 31 July 2024, and the construction and improvements programme will begin in August 2024, with estimated completion in mid-2025. The Brix was acquired by CLS in April 2021 with 28% vacancy and it is now fully let following the above letting.

This deal highlights CLS’ commitment to transforming existing properties into future ready high-quality, sustainable offices that will meet demanding standards. Additionally, with the new lease and the planned improvements, the asset is estimated to generate a substantial increase in value between now and practical completion.

Fredrik Widlund, Chief Executive Officer of CLS, commented: “This is one of the largest-ever leases for CLS in Germany and a fantastic achievement for the team. Together with the City of Essen, we have committed to invest in a comprehensive refurbishment programme in line with our strategy to operate modern and sustainable offices of the highest quality.

Demand for the right office space remains strong in Germany, highlighting the significant advantages of having our dedicated, in-house asset management team with local expertise working to enhance our property portfolio.

We look forward to working with the City of Essen and to welcome its employees and citizens to The Brix.”