(Alliance News) - CLS Holdings PLC on Wednesday announced it has completed a GBP61.7 million loan with Scottish Widows, secured on a portfolio of five UK office properties.
The property investor in UK, Germany and France said the loan replaces two existing ones of GBP27.4 million, which were due to expire before the end of 2021, as well as financing three recent acquisitions.
CLS said the 12-year loan has a loan-to-value ratio of 55% and a fixed interest rate of 2.7%. Subject to some conditions, the company will be able to remove or substitute properties as security for the loan.
"We have had a strong relationship with Lloyds Banking Group PLC, of which Scottish Widows is a part, for many years. This long-term financing recognises and incentivises our sustainability commitments while aligning them to those of Scottish Widows. Furthermore, this loan diversifies our debt profile and the amount meeting green financing principles," said CLS Chief Financial Officer Andrew Kirkman.
Last week, CLS said it collected 93% of its second quarter rent, compared to 91% a year earlier and 98% of first quarter rent, compared to 99% a year ago.
Shares in CLS were down 0.5% at 235.76 pence in London on Wednesday.
By Zoe Wickens; zoewickens@alliancenews.com
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CLS Holdings (CLI)