Mera Investment Management has unveiled plans to invest £150m of private capital into prime UK real estate assets over the next 18 months.
The family office-owned specialist real estate funder is seeking to take advantage of a lack of funding availability from institutional lenders and “capitalise on the wealth of new credit investment opportunities”. Mera is looking to invest in super prime residential properties in Central London and offices in regional cities such as Bristol and Glasgow.
Mera Investment Management was founded by entrepreneur Jan Fletcher OBE and Edward Matthews, a former multi-billion family office executive who managed structured real estate finance at Topland Group.
The senior management team also includes director Frank Pennal, who spent 18 years as CEO of Close Brothers Property Finance, and non-executive director Neil Smillie.
Fletcher said: “Now is the time to double down on prime UK real estate. On a macro level we’re already seeing opportunities from an exodus of high-net-worth-individuals, who are leaving the UK in favour of more attractive tax regimes. As a result, a number of high value single assets, portfolios and development opportunities are coming on to the market and the team has never been busier. I have always loved real estate as an asset class and due to the market cycle and lack of institutional appetite, there has never been a better time to invest in bricks and mortar.”
Matthews added: “Private credit is where the investment sector is going. It is a $1.7tn industry and marries perfectly with real estate, which provides greater stability in returns than other investments. As we reach the turning point within prime UK real estate pricing and supply, now is the time for growth and investment. With our new substantial funding lines Mera Investment Management is poised to take full advantage of these new opportunities and, crucially, to move at speed. We are anticipating loans sizes of between £10m to £30m and with the current significant pipeline of potential deals, we expect to deploy £150m within the next 18 months.
“The speed of the current market, our track record, and focus on relationship lending with high levels of client servicing, place us in a strong position to grow. We intend to increase the size of the business significantly over the next 18 months, whilst ensuring the continued high level of service that our borrowers expect. This growth is sustainable – the business is underpinned by an extremely experienced senior management team who have seen multiple market cycles and have the ability to navigate complex economic environments.”
