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Aviva Investors provides £154 million refinancing to CLS Holdings

Aviva Investors, the global asset management business of Aviva, has provided CLS Holdings (CLS) with a £154 million senior debt facility towards the refinancing of 12 UK assets.

The financing, which is provided over 10 and 12-year fixed-rate tranches, is being made on behalf of a combination of the Aviva UK Life Annuity business and third-party client mandates.

Located across London and the South East of England, the portfolio consists of 11 office assets alongside a mixed-use scheme in Vauxhall, including hotel and student accommodation assets. The assets are let to a broad mix of tenants with income well diversified across the portfolio and carry a weighted average unexpired lease term (WAULT) of 5.2 years.

The facility is structured to include KPIs that are linked to sustainability targets, and which have been independently reviewed to provide assurance that they are aligned with LMA sustainability-linked loan principles. A margin reduction of up to 10 basis points is available dependent on CLS delivering specific targets which will be assessed annually throughout the life of the facility.

Gregor Bamert, Head of Real Estate Debt at Aviva Investors, says: “We are delighted to support CLS and the strong emphasis it places on the provision of a sustainable portfolio. This transaction builds on our experience of incentivising borrowers to bring the green credentials of their portfolios into sharper focus, and we are pleased to have received independent assurance that the facility is aligned with LMA sustainability linked loan principals. The wide range of investment capital used within the facility further underlines our ability to tailor debt solutions for borrowers whilst delivering strong opportunities for our investor clients.”

Source: propertyfundsworld.com on 30 September (https://www.propertyfundsworld.com/2020/09/30/290259/aviva-investors-provides-gbp154m-refinancing-cls-holdings)