Swiss Life subsidiary sells office property in Essen
Corpus Sireo, a subsidiary of Swiss Life Asset Managers, is selling The Brix office property in Essen to CLS Holdings.
The Brix is an office ensemble at the intersection of Bismarckstrasse and Kruppstrasse 16 in downtown Essen. It was built in 1948 in the classic factory charm; the striking brick facade of the entire ensemble is a listed building.
The Brix consists of five interconnected buildings with three to five floors and a total leasable area of 21,750 sqm. The complex includes two courtyards and 89 parking spaces on the property and another 300 in the immediate vicinity. Opposite the office building is the Bismarckplatz subway station, and Essen's main train station is just a few minutes' walk away.
According to CLS, the property generates a contract rent of 1.72 million euros (about 1.87 million CHF), which corresponds to a net initial yield of about 4.2%. The buildings are leased to 72% three tenants, he said. The anchor tenant is Siemens AG, which occupies a large part of the space. CLS intends to gradually modernize the unrented space in order to then rent it out at market level. The target yield will then be over 6%, according to the investor.
Colliers International acted as advisor to the seller Corpus Sireo in the transaction. The transaction is expected to close in early 2021.
The Corona pandemic is accelerating demand for modern, sustainable and well-connected office properties, says Rolf Mensing, Head of Germany at CLS Holdings. Even the home office issue will not slow down this trend toward more quality office space. "We therefore see good investment opportunities here overall in the long term." CLS also wants to realize such "new-work office worlds" for tenants at The Brix and focus on the quality of stay and sustainability of the ensemble. (ah)
