CLS taps savings bank in Freiburg

CLS Holdings has secured a €9m, five-year non-recourse loan from German savings bank Freiburg Sparkasse Bank.

The 68.8% leverage financed the listed company’s acquisition of 18-20 Bismarckalle – a multi-let office building in Freiburg, south-west Germany.

CLS paid a Resolution Property-owned fund €13.08m for the 7,135m² building, which is let to six tenants including a government department, Commerzbank and KPMG.

Freiburg Sparkasse is a new lender for CLS. The company’s chief financial officer, John Whiteley, said the group now has 55 loans from 21 banks across Europe and always invites at least 12 lenders to pitch for business.

In this transaction Freiburg Sparkasse offered a better deal than some of its existing lenders, CLS said.

CLS last year refinanced its largest asset, Spring Gardens in Vauxhall, south London, with £78.5m of new, four-year debt from RBS and Deutsche Postbank.

Also in Germany, Deutsche Hypothekenbank, Deutsche Pfandbriefbank and Helaba last month jointly financed the Höfe am Brühl mall in Leipzig.

They each provided one-third of the €170m total facility for a company owned by mfi Management für Immobilien.