The Board of CLS Holdings plc is pleased to announce that it has refinanced its property Spring Gardens. The property is located off Albert Embankment on the South Bank in London.
Spring Gardens, London.
The building comprises 197,658 ft² (18,361 m²) of office space and is fully let to a department of the Home Office at an annual rent of £6.4 mln. (approx. 8.6 mln.). The property has recently been extended by 26,266 ft² (2,440 m²) and on occupation by the tenant of the increased space, the majority of existing leases were extended to 28 February 2026.
The new facility of £101.2 million (approx. 136 mln.) which was provided by Eurohypo AG, London results in a £36.8 mln. (approx. 50 mln.) cash surplus, and gives an ongoing reduction in annual loan repayments of £1.2 mln. (approx. 1.6 mln.) compared with the previous facility.
The interest rate is fixed for five years at 5.34% including margin, secured through an interest rate swap for 19 years cancellable by the bank after five years at nil consideration. This swap was entered into earlier in 2007 in order to take advantage of the then prevailing attractive interest rates.
Executive Chairman Sten Mortstedt commented: "I am very pleased with the performance of Spring Gardens which demonstrates the possibilities of value creation through active property and debt management. I am also pleased that the attractive funding package could be completed in the currently more difficult lending environment and it was key to be dealing with a bank with whom we have a good longstanding relationship. The CLS Group has increased its cash deposits from £100.8m (30/06/07) with £44.2m to £145.0m and is therefore well equipped to take advantage of any downturn in the market."
Source: CLS Holdings