The lender will establish a dedicated joint venture department with plans to deploy funds into real estate development and investment equity opportunities across the UK.
This will be aimed at projects that may otherwise face delays because of a lack of equity capital.
MERA Investment Management said the facility reflected growing interest from US institutional capital looking to increase exposure to UK real estate. Research from CoStar has shown that North American investors represented 42% of all overseas investment in UK commercial real estate in the first half of last year, valued at £8bn.
The new department will target commercial and residential developments, aiming to support UK developers who face challenges in ringfencing enough capital to reinvest into their pipeline.
The real estate joint venture department will focus on projects that include the repositioning or repurposing of existing assets, such as office conversions.
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MERA Investment Management will work with experienced developers and firms to provide finance between £5m and £15m per project, targeting developments with a 2-3-year timeline and a broad range of liquidity and exit strategies. It has already financed two joint venture projects, including its largest deal to date in partnership with Winslade Park (pictured) to support the development of a £100m mixed-use scheme in Exeter.
The division will be led by Antony Iannaccone, chief investment officer at MERA Investment Management. He joined the lender last year, coming from Topland Group, where he led the firm’s joint venture strategy. Over the course of his career, Iannaccone has overseen more than £700m in gross development value through joint venture investments across the UK real estate market.
Iannaccone said: “Deal flow across the market is strong but many operators are struggling to find the preferred equity required to bring projects forward. At the same time, we are seeing growing appetite from US investors looking to increase their exposure to UK real estate.
“With its stable legal and regulatory framework and depth of liquidity, the UK remains one of the most attractive destinations for global property capital, particularly at a time when pricing adjustments have created compelling entry points.”
He added: “For MERA, this is a landmark step in the growth of the company. It allows us to support our clients with a broader and more flexible range of capital solutions.”
