MERA completes £6.1m Chancery Lane office refinance
The 24-month facility was agreed at 55% loan-to-value (LTV), with interest part-serviced and part-accrued monthly.
MERA has completed a £6.1m equity release refinance secured against a fully let serviced office near Chancery Lane in London.
The c.10,000 square foot building was let across 16 individual office suites.
The finance released funds for the client to exchange on another office, which it bought from a large overseas investor for refurbishment.
Completion of the acquisition was deferred for nine months.
The 24-month facility was agreed at 55% loan-to-value (LTV), with interest part-serviced and part-accrued monthly.
It refinanced existing debt with the Bank of London and The Middle East.
MERA worked with mezzanine finance partner Martley Capital on the deal.
The client chose the facility rather than extending its existing loan because it wanted a lender that could also support the refurbishment of the new property after completion.
Leo del Rosso (pictured), associate director at MERA, said: “This was about releasing the funds our client needed to move on to their next opportunity, without getting tied up in a straight refinance.
“Structuring it alongside Martley Capital gave them the flexibility to exchange on the new acquisition now, and the certainty of a lender who can support the refurbishment once it completes.
“We’ve backed this client before, and that history mattered here. They wanted a lender who understood the plan for the new asset, not just the numbers on this one, and that’s exactly the kind of relationship we want to keep building with clients we’ve already worked with.”
Tom Tunley, director of debt capital markets at Martley Capital, said: “We were pleased to support this transaction alongside MERA, structuring mezzanine finance that gave the client the certainty to move quickly on their next acquisition.
“It’s exactly the kind of deal where a joined-up capital stack makes the difference, and we look forward to seeing the refurbishment project progress.”
Related
FRP Real Estate Advisory arranges £1.1m refinance for Reading office conversion
MERA provides £3.25m bridging loan for London hostel
MERA provides £1.25m for Hertfordshire site acquisition
Cohort Capital completes £18.4m mezzanine facility for hotel refinancing
SHC Capital arranges £62m GB Bank funding for London property portfolios
FRP Real Estate Advisory secures £10m refinancing for King’s Cross hotels
MERA completes £1.63m development exit facility in Dalston
Investec Bank Channel Islands provides £8.17m loan for Guernsey property portfolio
Maslow Capital completes £136.8m facility for Vita Group
FRP arranges £47.2m office refinancing facility
HBI Capital completes £755,000 Somerset hotel refinance through Brickflow
