(Sharecast News) - CLS Holdings has secured a £154m loan from Aviva Investors, the listed property investment firm announced on Wednesday.
The loan, which is split equally between two 10-year and 12-year tranches, is secured against a portfolio of 12 UK properties, the majority of which by value are offices and include sites in Harrow, Staines and Vauxhall in south London.
It replaces three existing loans of £67m which were due to expire in 2020 and 2021, as well as gearing the unencumbered properties. The deal will result in net cash of £86m after costs, CLS said, boosting its cash reserves and allowing for "the evaluation of further acquisition opportunities". The loan-to-value is 55% and the average interest rate is fixed at 2.62%.
Andrew Kirkman, chief financial officer of the FTSE 250 firm, said: "We are pleased to have secured this loan with such a well-established real estate funder. [It] increases our weighted average loan maturity by nearly 40% to 4.5 years."
Asset management firm Aviva Investors is owned by insurance blue chip Aviva.
Shares in CLS were flat at 214p as at 1230 BST.
CLS Holdings (CLI)
Aviva (AV.)24 Jun 2024 13:06
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