UK’s digital bank OakNorth, known for backing small and medium0sized business ventures, has extended a £50 million revolving credit facility to CLS Holdings, a specialist in transforming office and commercial real estate with a strong emphasis on sustainability. Established in 1992 by the Mörtstedt family, CLS Holdings has grown into a major force in revitalizing office and commercial properties across the UK, Germany, and France.
The company’s portfolio, currently valued at roughly £1.7 billion, spans more than 80 locations and serves over 650 tenants.
These include corporations and government departments, reflecting a stable and diverse tenant mix.
The funding will allow CLS Holdings to refinance existing borrowings while freeing up capital for portfolio growth.
Proceeds will support ongoing asset management programs, including refurbishments, leasing initiatives, and strategic repositioning of properties to align with rising tenant expectations for energy-efficient and high-quality workspaces.
As a London-headquartered firm listed on the London Stock Exchange, CLS Holdings is recognized for its patient ownership model, hands-on management style, and dedication to upgrading buildings for better environmental performance and workplace appeal.
The timing of the deal is particularly significant, as companies across Europe continue to seek modern, low-carbon office environments to meet internal net-zero targets and comply with tightening ESG standards.
Harry Stokes, Chief Financial Officer of CLS Holdings, welcomed the partnership.
He highlighted the added flexibility the facility brings for optimizing assets across core European markets.
Stokes commended OakNorth’s team for quickly grasping the nuances of the business and structuring the revolving credit arrangement with speed and full transparency.
The arrangement, he noted, will help sustain investments in premium sustainable spaces while preserving a careful approach to capital deployment and balance-sheet strength.
Mohith Sondhi, Managing Director of Debt Finance at OakNorth, described CLS Holdings as a mature institutional platform with a solid history of active management in major European cities.
He pointed to sustained demand for sustainable offices, driven by tenant preferences, corporate decarbonization pledges, and evolving regulations.
Sondhi stressed that backing established operators who are upgrading their holdings is increasingly vital.
The transaction also showcases OakNorth’s strength in delivering customized, flexible financing solutions for complex revolving credit structures in sectors where many lenders hesitate to engage.
Since launching in 2015, OakNorth has carved out a niche serving lower mid-market businesses often underserved by traditional banks.
To date, the lender has advanced more than $20 billion across thousands of entrepreneur-led companies, helping create over 70,000 jobs and generating more than £40 billion in economic value. Its disciplined credit approach has reportedly placed it among the primary commercial banks worldwide.