Real Estate Debt
Mera IM is an asset backed direct lender and provides fast and reliable senior and mezzanine loans to some of the leading developers and investors in the UK. Our funding is bespoke to each requirement and suitable for acquisitions, refinancing, refurbishments and marketing periods. We are driven by the location and always have a preference for prime assets.
Sectors
Residential
Commercial
Alternative
Senior Terms
LTV: up to 70%
Loan Amount: £2m-30m
Term: 12 - 36 months
Mezzanine Terms
LTV: up to 80%
Loan Amount: £0.5m-£5m
Term: 6 - 24 months
Loan Details
Acquisition
Refinance
Stabilisation
Light refurbishment
Development exit
Development holding
Purpose
Best in class new build, refurbishment or conversions, including high value single residential units, refurbished commercial offices and high yielding alternative assets. We also consider HMOs & rental portfolios.
Property
Senior: £2,000,000 to £30,000,000.
Mezzanine: £500,000 to £5,000,000
Loan Size
Senior: Up to 70% of the lower of the market value or the purchase price of the property.
Mezzanine: up to 80%. Higher LTVs considered by exception
Max LTV
Max LTC
Up to 90% of the total project costs
Loan Term
Senior: 12 - 36 months (interest serviced after 24 months)
Mezzanine: 6 - 24 months
Arrangement Fee – 1.00% of loan facility
Exit fees applicable after 18 months.
Arrangement and Exit Fees
Fully retained, part retained or serviced monthly.
Interest
Prime central and Greater London, core regional cities, strong commuter towns, and key growth areas across England, Wales. Jersey and Isle of Man also considered.
Locations
For loans over 50% LTV, a personal guarantee equal to at least £750,000 or 25% of the loan amount (whichever is higher) will usually be required from the UBOs.
Mezzanine: Guarantees will be required.
Guarantees
Senior loans must have the 1st legal charge over the Property and the borrower, or 2nd legal charge for mezzanine loans.
Security
Borrower must have at least 2 years relevant experience in residential investment, development or asset management and completed at least 1 similar project as a principle/borrower.
Experience
Freehold or long leaseholds (+125 years remaining on the lease, subject to our valuer’s comments).
Property Tenure
Property must currently hold an EPC C or higher, or provide evidence that the property will hold an EPC C or higher after works to the property have complete.
Energy Performance
Rural land without planning is not currently being considered. Urban or brownfield land with planning must be below 50% LTV.
Second charges – for properties valued above £5,000,000. We allow our borrowers to include mezzanine finance up to 90% LTC.
Conditions
Case Study - Residential Bridging Loan
Loan Amount: £22,000,000
Property: High value new build single asset
Location: Home Counties
Purpose: Residential “hold to sell” loan
Term: 24 months with option to extend
LTV: 60% of Market Value