Real estate lender Mera Investment Management has provided an acquisition facility to enable the purchase of Greyfriars House, an eight-storey vacant office building near Reading train station.
The four-week loan completion supports property developer Elder, which has submitted plans to transform the building into 266 co-living units, the first of its kind in the area.
The redevelopment aims to introduce a new flexible housing model designed for young professionals and key workers, offering flexible lease options and shared amenities, including a rooftop garden and terrace.
BACKING FOR CO-LIVING CONCEPT
Interest in the proposed purpose-built co-living scheme has been strong from both public and private sector organisations. The Royal Berkshire NHS Foundation Trust and Berkshire Healthcare NHS Foundation Trust have voiced support for the project, which would provide much-needed affordable housing for key workers.
Elder has worked closely with Reading Borough Council and local stakeholders to advance its plans, positioning the development as a response to rising affordability challenges in the town.
LENDER COMMITMENT
The acquisition was facilitated with advisory support from James Gray of ARE Capital Advisors, who acted on behalf of Elder.
Edward Matthews, CEO of Mera Investment Management, said the transaction reflects the lender’s commitment to supporting innovative redevelopment projects.
“We are pleased to have played a role in supporting Elder’s exciting plans for Reading town centre.
“The redevelopment of Greyfriars House seeks to provide a new category of affordable accommodation to the area, a move which is welcomed by many, and we are proud to be involved in a scheme which could become high-quality new homes for young professionals and key workers.”
UNDERUTILISED COMMERCIAL SPACE
Ed Marsh, director at Elder, highlighted the importance of alternative housing models in today’s market.
“Following a constructive pre-application process with the council and positive engagement with the community and key stakeholders, it is clear that there is strong potential to introduce a new, flexible housing model in the heart of Reading.
“With rising affordability challenges for young professionals and key workers, delivering high-quality, well-located housing solutions is more important than ever.
“Mera Investment Management was the ideal lender partner for us. Traditional high street funding options aren’t available for vacant offices anymore; the Mera team got behind this project and provided a high level of service to us and our legal team, which ensured our acquisition completed on time.”
STRATEGIC FINANCING FOR GROWTH AREAS
James Gray, CEO of ARE Capital Advisors, said the deal underscores the importance of strategic funding in repurposing underutilised buildings.
“ARE Capital Advisors are delighted to have supported Elder in securing this crucial financing for the first stage of the transformation of Greyfriars House.
“This project exemplifies the innovative and strategic approach needed to unlock the potential of underutilised commercial buildings, particularly in high-demand areas such as Reading.
“Mera’s ability to swiftly provide a tailored funding solution was instrumental in ensuring the acquisition was completed on schedule. We look forward to seeing this development come to life and contribute to much-needed housing in the region.”
