MERA has completed a £1,249,500 acquisition facility for a 50-acre mixed-use site near Hitchin, Hertfordshire, after assessing the property's residential, commercial and agricultural elements individually to structure lending that reflected the asset's value.
The 24-month facility, secured at 70% LTV, funded the purchase of the £1.8m former commercial glasshouse site, which was acquired with vacant possession. The site comprises two bungalows, five acres of glasshouses previously used for commercial farming, and around 40 acres of farmland. James Wyllie of Montpelier Private Finance introduced the transaction, which was MERA's first with this borrower.
The mixed nature of the site meant there was no standard lending template available. MERA assessed the letting potential of the glasshouses, bungalows, outbuildings and farmland individually before structuring the facility. Legal support was provided by David Merson at gunnercooke, with Katherine Ilett at Savills carrying out the valuation.
The borrower's plan is to bring the site back into productive use over time. Near-term activity includes letting the glasshouses, refurbishing and letting the two bungalows, and converting the commercial outbuildings into smaller units aimed at local occupiers. Longer-term, the owner intends to explore planning opportunities to develop further commercial space, with potential redevelopment of part of the glasshouse site also under consideration.
MERA noted that UK glasshouse growers have faced sustained pressure from high energy costs in recent years, with the firm pointing to significant volumes of specialist commercial land standing idle as a result of rising heating bills making year-round growing less viable. The release does not identify the source of the underlying data behind these claims.
"Sites that combine residential, commercial and agricultural uses under one roof don't fit a standard lending box," said Leo del Rosso, associate director at MERA (pictured).
"As our first deal with this client, getting comfortable with the opportunity quickly took proper diligence rather than a rate-card approach. James Wyllie at Montpelier Private Finance was a great partner in bringing the deal to us, and it's exactly the kind of regional, multi-faceted transaction we want MERA to be known for.
"We're looking forward to supporting the borrower as their letting and development plans for the site progress."
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