M7 Capital completes £17.3 million portfolio refinance loan in Scotland

By Bridging Loan Directory 26th October 2021

M7 Capital (“M7C”), a full-service real estate debt specialist, announces that it has provided, on behalf of its UK debt fund TREC II, a £17.3 million loan to Alltmore Properties Ltd (the “Sponsor”), a specialist investor in business centres across Scotland and the North of England, to support the refinancing of a portfolio of seven out of town business space assets in Scotland.

M7 Capital will also make available an additional £25 million loan facility to finance the further growth of the portfolio through the targeted acquisition of office, industrial and retail warehouse assets in the region.

The loan is secured against a portfolio comprising seven assets totalling c. 170,000 sq ft, which are situated on major business parks in the towns of Stirling, Inverness, Dunfermline, Bellshill and Perth.

The portfolio, which is 97% let to a diverse range of occupiers, has recorded consistently 100% of rent collection during the Covid-19 pandemic, demonstrating the dominant locations of the assets within their catchment areas and the strength of the tenant base.

Alltmore is a specialist investor focused on managing and growing a portfolio of high quality commercial real estate assets situated in business centres across Scotland and North England.

Alltmore benefits from an experienced and entrepreneurial management team with a combined 75 years’ experience in commercial real estate.

The business takes a proactive approach to the management of commercial property to maximize returns and capital appreciation.

M7 Capital has been the internal adviser to M7 Real Estate (“M7”) for all its debt capital market needs since M7 was established in 2009.

In 2016, M7C expanded its operations to incorporate a real estate lending and loan servicing platform. M7C’s first UK debt fund, TREC II, has now deployed more than £140 million across 17 different loans in line with its strategy of providing loans of up to 70% LTV between £5 million and £25 million across the office, retail warehouse, industrial and leisure sectors.

Hugh Fraser, Chief Executive Officer of M7C said:

“Alltmore has compiled a high quality portfolio of business space assets, reflected in the high occupancy rate and strong rent collection data over the course of the pandemic.

We look forward to working with team at Alltmore, who are specialists in this area, as they continue to grow the portfolio, leveraging their proven track record.”

Kenneth MacKay Managing Director at Alltmore said:

“We are delighted to have agreed the facility with M7C and look forward to working with them in the years to come.”

The deal enables us to expand the existing portfolio and optimise any new acquisitions using the same strategies that have been applied to the current assets.

This in turn will allow the highly experienced Alltmore team to add value and to build on the already impressive returns offered to our investors.”