MERA has completed a £6.1 million equity release refinance on a serviced office building located near Chancery Lane, London. This transaction allows the property owner to proceed with a separate commercial acquisition.
The deal was structured in partnership with mezzanine lender Martley Capital. The approximately 10,000 sq ft property, which is divided into sixteen individual office suites, is fully let and was previously financed by Bank of London and The Middle East.
The new facility has a 24-month term at 55% loan-to-value. Interest payments are split between serviced and accrued components on a monthly basis. The released funds will enable the borrower to exchange on a refurbishment project acquired from an overseas investor, which has a nine-month deferred completion period.
According to MERA, the client sought a lender capable of supporting the refurbishment phase once the asset completes, rather than extending its existing facility. This deal reflects activity in London’s commercial finance market, where prime London sales activity has faced headwinds recently.