CLS Holdings plc announced that it has signed a 30-year lease with the City of Essen 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.