Los Angeles-based Cloud Imperium Games has pulled out of a deal to buy German chemicals giant BASF’s UK headquarters, citing Brexit as a key factor.
The gaming company had been in talks to buy BASF’s office in Cheadle Hulme, Greater Manchester, for several months as part of a UK expansion drive, with EG first reporting the discussions in May.
A spokesperson for Cloud Imperium said: “Over the past year, Cloud Imperium has been investigating an office move from our existing studio in Wilmslow [Cheshire] to a larger space within the nearby area.
“However, we ultimately decided the space was not an ideal fit for us given current circumstances, including the continuing uncertainties introduced by Brexit, such as the impact on property and business values, as well as currency fluctuations and effect on our ability to employ and maintain EU nationals (a substantial part of Cloud Imperium’s workforce).
“Therefore, the company no longer felt it was the right move at this time.”
Cloud Imperium had been working towards a 10-year plan to expand its UK business, according to a UK Trade and Investment reported published in 2016.
In the report, co-founder Ortwin Freyermuth said Wilmslow had grown to become the company’s biggest global hub, stating it was planning to expand its presence even further in the UK.
“We’re working towards a 10-year plan for Foundry 42, taking on more space to house our growing team,” he said. “It wasn’t our original intention for the UK to become our biggest hub, but given the price structure and the government support, that is what’s happened.”
The firm also has studios in Derby, near Nottingham, as well as in Frankfurt, Germany, and Austin, Texas.
BASF is now approaching potential bidders that previously showed in interest in the office located at Earl Road. Price is on application, but it is understood that it is in the region of £6m.
According to reports, BASF’s Cheadle HQ is home to roughly 220 employees, making the company one of the biggest employers in the area.
In May, it emerged BASF was looking at taking up space Muse’s 2 Stockport Exchange. It is understood BASF is still committed to the move.
Muse’s new 60,000 sq ft office building, earmarked for a 2020 completion, is part of a wider £145m Stockport Exchange development delivered in partnership between the developer and Stockport Council.
The scheme will ultimately deliver up to 375,000 sq ft of office space and 28,000 sq ft of commercial floor space.
It is understood Avison Young is advising Cloud Imperium and JLL is acting for BASF.
BASF declined to comment. Muse was approached for comment.
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