Aviva Investors has provided CLS Holdings with a £154m sustainability-linked senior debt facility for 12 UK assets.
The finance is provided over 10 and 12-year fixed-rate tranches, on behalf of the Aviva UK Life Annuity business and third-party client mandates.
It offers a margin reduction of up to 10 basis points dependent on CLS achieving specific sustainable targets, which will be assessed annually.
The portfolio comprises 11 office assets in London and the South East and a mixed-use scheme in Vauxhall with a hotel and student accommodation. It has a weighted average unexpired lease term of 5.2 years.
Gregor Bamert, head of real estate debt at Aviva Investors, said: “This transaction builds on our experience of incentivising borrowers to bring the green credentials of their portfolios into sharper focus.
“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.”
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