CLS to buy The Brix building in Germany for €38.2m

CLS has exchanged contracts to buy "The Brix" office building at Kruppstrasse 16, in Essen, Germany for €38.2m.

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 sqm (234,115 sq. ft) of lettable space.

CLS said The Brix has excellent transport connections, sitting opposite the Bismarckplatz underground station and an eight-minute walk from the central station in the popular South Quarter next to the new developments, "Literature Quarter" and the regeneration of the former RWE headquarters.

The property has a contracted rent of €1.72m and the purchase price represents a net initial yield of 4.2%.

CLS has also exchanged on the sale of two smaller properties in the UK, Quest House, Hounslow and Atholl House, Aberdeen, for a combined £5.9m.

Chief executive officer Fredrik Widlund said: "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, we acquired over £200m of properties while disposing of £70m, 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."