• Lloyds refinances six individual lenders with one cross collateralised facility across the majority of the Clockwise Portfolio.
• The transaction provides a capital structure that enables Castleforge to complete the ‘last lap’ of its lease up with the benefit of a single financing package.
• The new financing structure positions Clockwise for growth and to become the ‘flex office brand of choice’ in the UK and Europe.

Castleforge, the owner of the Clockwise Portfolio, is pleased to announce a successful refinancing with Lloyds in a single facility on a fully secured, cross collateralised basis.

The funding package repays six individual lenders and enables Castleforge to complete the final phase of its leasing and asset management plan while positioning the portfolio for future growth.

The portfolio comprises 15 properties, let on a combination of traditional and flexible leases operated by Clockwise, Castleforge’s wholly owned in-house, best in class, flex office operator. The properties, located in strong micro-locations in core cities across the UK and Europe, comprise a total lettable area of 1.35m sq ft. The portfolio has benefitted from £180m of capex investment over the last five years ensuring the properties have a top specification in each of their markets, in all respects, including fit out, tenant amenities and ESG credentials. With capex works now substantially complete, the portfolio is in the final stages of leasing with a current occupancy of 80%.

Michael Kovacs, Founding Partner of Castleforge said:
“We are pleased to have completed this whole business refinancing with a single lender who was able to structure a facility that met our financing needs. Having completed the portfolio build out and redevelopment, this facility simplifies our capital structure and allows the management teams of Clockwise and Castleforge to focus on concluding our lease up before once again turning to growth, with the objective of making Clockwise the flex office brand of choice in the UK and Europe.”

Klaus Betz-Vais, Head of Global Investors and Listed Clients at Lloyds said:
“The Castleforge team has created an impressive business and delivered a proven track record, and the substantial equity capital that has been invested in the portfolio closely aligns to Lloyds’ commitment to support growth across the regions of the UK. An optimised capital structure is essential to the success of any enterprise, and we’re pleased to have been able to help craft a solution that achieves this for Castleforge.”

James Belchamber, Head of CRE Capital Markets at Lloyds said:
“This transaction marks an exciting further evolution of Lloyds’ capabilities to support its clients. Utilising our real estate credit structuring capabilities, we can offer fully underwritten, quickly executable, straightforward single lender solutions which cater to a broad range of funding requirements, and we look forward to working with Castleforge as it delivers its business plan and beyond.”