M7 Capital completes £19 million portfolio refinance loan

By Bridging Loan Directory 17th May 2022

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 £19 million loan to refinance a portfolio managed by Avignon Capital (“Avignon”).

The three year loan is secured against five properties (the “Portfolio”) totalling c. 78,500 sq ft, which provide city centre leisure and retail services, with ancillary office space in London, Southampton and Croydon.

The Portfolio is 97% let to 28 occupiers including Tesco, Brewdog and Vodafone with a WAULT of 7.4 years.

Avignon Capital, a European property investment and asset management business based in London, headed by Patrick Flaton (CEO) who has over 20 years of experience in real estate, manages €1.4 billion of assets across 40 properties on behalf of its clients, including private investors, family offices and the listed Cubic Property Fund.

Avignon’s core markets comprise the UK, Germany, Netherlands and Spain, covering the industrial, hotel, office and retail sectors, with a focus on core and ESG-focussed value add strategies which will transform and reposition outdated and underinvested buildings into those with pioneering ESG credentials.

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 £200 million across 22 different loans in line with its strategy of providing loans of up to 70% LTV and from around £5 million and £25 million across the office, retail warehouse, industrial and leisure sectors.

Hugh Fraser, Chief Executive Officer of M7C said:

“The strength of this portfolio is reflected in its high occupancy rate and strong rent collection and is testament to Avignon’s ability to identify and execute on compelling investments.

We look forward to working closely with Avignon as they continue to build on their established track record and grow the portfolio.”

Doug Burton-Cantley Director at Avignon said:

“We are pleased to have secured this loan through M7 Capital. This has resulted in a successful financing outcome for our client and further improving overall returns on the portfolio.

We value our relationship with M7 Capital and look forward to partnering with them again in the future”