Mortimer Street Capital and London Credit partner on £3.6m refurb facility for commercial development

Mortimer Street Capital has arranged a £3.6m commercial refurbishment facility with London Credit to support the redevelopment of a commercial site in Cambridge.

The funding facility will support the redevelopment of an existing office and light-industrial building into approximately 20,000 sq ft of modern office and medical technology accommodation.

Future planned improvements include over-cladding works, upgraded thermal performance, fully electric services infrastructure and a target BREEAM “Excellent” rating.

Justin Trowse, managing director at Mortimer Street Capital, commented: “The borrower presented a strong development plan focused on delivering high-quality office and Med-Tech space in a supply-constrained location, and London Credit understood and moved quickly to structure a competitive facility.”

The facility was structured to provide flexibility during the early refurbishment phase, while the developer secures a tenant and fitout specification.

Mortimer Street Capital acted as funding advisor throughout the transaction, sourcing and structuring the facility on behalf of the borrower.

Marios Theophanous, credit manager at London Credit, said: “This case is a great example of the rise in mixed-use refurbishment projects, as investors look to improve existing assets, enhance income potential and bring underutilised space back into productive use.

“It also demonstrates what can be achieved when lenders and brokers work closely together.

“By collaborating from the outset, we were able to understand the asset, the borrower’s plan and exit strategy, and then to structure a funding solution that gave the client the confidence to move the project forward.”