M7 Capital completes £7.55 million portfolio refinance loan

By Bridging Loan Directory 13th June 2022

M7 Capital (“M7C”), a full-service real estate debt specialist, announces that it has provided a £7.55 million loan to refinance two commercial assets at St Georges Court in New Malden and Ewell Road in Surbiton.

The loan was made on behalf of the M7 Capital managed UK debt fund TREC II.

St Georges Court in New Malden, South London, comprises a total of c. 18,000 sq ft of multi let office space and is let to a diverse mix of small businesses.

The second asset located at Ewell Road comprises c. 15,000 sq ft across three stories, with Budgens retail on the ground floor and eight residential units above.

The properties are 96% let with a WAULT of 5.4 years.

M7C is providing a two-year debt facility to assist with the borrower’s design costs, arrangement of contractor and development funding for St George’s Court, which is set to become a fully operating serviced apartment building.

The transaction sponsor is Serviced Apartment Real Estate LLP, a purposely created real estate management vehicle, which is backed by key personnel including Gary Jones, its General Partner

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 £210 million across 23 different loans in line with its strategy of providing loans of up to 70% LTV and from around £5 million to £25 million across the office, retail warehouse, industrial and leisure sectors.

Hugh Fraser, Chief Executive Officer of M7C said:

“This new loan further progresses our goal of becoming a leading provider to the undersupplied real estate debt market for small to medium sized projects.

Gary and the team at Serviced Apartment Real Estate LLP bring a wealth of experience and we look forward to working closely alongside them as they deliver these with a strong focus on sustainability, in line with their business strategy.”

Gary Jones at Serviced Apartment Real Estate LLP said:

“New Malden is the first acquisition for the Serviced Apartment Real Estate Fund from a pipeline of over £400m of purchases.

This acquisition should deliver an exceptional risk adjusted return in a sector that is under supplied at this moment in time. We look forward to working with M7 again for future purchases.”