Mera Investment Management to invest £150m in prime UK real estate
Real estate funder Mera Investment Management plans to deploy £150m of private capital to invest in £250m of prime UK real estate over the next 18 months.
The firm said it is responding to an influx of prime residential properties coming on to the market because of Labour’s abolition of the non-dom tax status.
Speculation over the move prior to last month’s budget had already led many high-net-worth individuals to leave the UK in favour of lower tax jurisdictions, including Dubai, Switzerland and Italy.
Many of the properties are in prime Central London, where sales are also expected to be buoyed by the recent interest rate reduction.
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The US election could also boost demand for high-value properties, Mera said, with a strong dollar supporting a mobilisation of capital into London and real estate agents have already reported receiving an influx of enquiries from US buyers in the wake of Trump’s election victory.
The firm said it is looking to take advantage of a lack of funding availability from institutional lenders and capitalise on the wealth of new credit investment opportunities – from super prime residential properties in prime Central London to offices in regional cities such as Bristol and Glasgow.
Mera, which provides both debt and equity finance across prime residential, commercial and alternative real estate, is owned by a multi-generational UK-based family office with a 91-year heritage.
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The firm was founded by chairman Jan Fletcher and chief executive Edward Matthews.
“Now is the time to double down on prime UK real estate,” said Fletcher. “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 $1.7trn (£1.3tn) 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 £10-£30m and with the current significant pipeline of potential deals, we expect to deploy £150m within the next 18 months.”
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