Mera Investment Management is planning to deploy £150 million of private capital to fund or invest in £250 million of prime UK real estate over the next 18 months.

The family office owned specialist real estate funder argues that many High Net Worth Individuals (HNWIs) to leave the UK in favour of lower tax jurisdictions following months of speculation about the future of non-doms.

The non-dom tax status was abolished in the recent Budget.

This, Mera Investment Management says, has resulted in an influx of prime residential properties coming on to the market, particularly in prime central London. It also believes the Trump presidential election win will further increase demand from US buyers.

NEW OPPORTUNITIES

The funder is planning 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.

“Now is the time to double down on prime UK real estate”

Mera Investment Management was founded by Jan Fletcher and Edward Matthews, and provides both debt and equity finance across prime residential, commercial and alternative real estate

Fletcher, Mera’s chairman, 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.”

“As we reach the turning point within prime UK real estate pricing and supply, now is the time for growth and investment”

Edward Matthews, Mera Investment Management CEO, added: “Private credit is where the investment sector is going. It is a $1.7 trillion 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-£30 million and with the current significant pipeline of potential deals, we expect to deploy £150 million within the next 18 months.”