Aviva Investors has provided CLS Holdings (CLS) with a £154 mln (€168 mln) senior debt facility to refinance 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 Key Performance Indicators that are linked to sustainability targets. 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.
’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,’ said Gregor Bamert, head of Real Estate Debt at Aviva Investors. ‘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.’
Ashish Dafria, Chief Investment Officer, Aviva UK Life, added: ‘We are very pleased to be working alongside Aviva Investors and their external clients on this new financing. The sustainability elements of the facility are particularly attractive, allowing us to work towards reducing the environmental impact of our annuity investment portfolio.’
The loan increases CLS’ weighted average loan maturity by nearly 50% to 4.5 years.
