MERA Investment Management has actually supplied a ₤ 3 million bridging loan to finance the acquisition and conversion of a mixed-use home on City Road, near Old Street in London.
The center will support the purchase of an office complex with 2 ground-floor retail units. The customer prepares to transform the property into 21 domestic flats under allowed development rules, subject to prior approval for change of use.
Deal details
The 18-month center was structured at 55% loan-to-value. Leo del Rosso, associate director at MERA Financial investment Management, led the transaction for the lender.
The customer is described as a UK-based home household with an established performance history. MERA waived its basic personal warranty requirement due to the borrower’s profile and the reasonably low leverage on the deal.
The lender indicated it might offer extra funding to support building and construction expenses as soon as advancement strategies are finalised. The 2 ground-floor retail units will be maintained.
Market context
The transaction shows continuous activity in London’s office-to-residential conversion market. Research study from BusinessLDN and CBRE recommends that transforming 10% of London’s 30 million square metres of office space could produce approximately 40,000 new homes.
“I’ve understood the principals of this family for several years, which allowed us to move with the certainty a case like this needs,” stated del Rosso. “This asset is placed to capitalise on the trend across London for transforming secondary workplace and retail space into housing.”
The center contributes to MERA’s portfolio of workplace acquisition and conversion funding in the capital.