Mortimer Street Capital has arranged a £3.6 million commercial refurbishment facility with London Credit to support the redevelopment of a commercial site in the Cambridge innovation corridor.
The facility will fund the refurbishment and repositioning of an existing commercial asset into high-specification office and Med-Tech accommodation in South Cambridgeshire.
The scheme forms part of a wider mixed-use development within the Southern Cluster surrounding Cambridge, an area with sustained demand for fitted commercial and research and development space.
Mortimer Street Capital said the location benefits from proximity to major science and biomedical campuses, transport links and continuing investment in the region’s innovation ecosystem.
The project involves the redevelopment of an existing office and light-industrial building into about 20,000 sq ft of modern office and Med-Tech accommodation.
Planned improvements include over-cladding works, upgraded thermal performance, fully electric services infrastructure and a target BREEAM “Excellent” rating.
The facility has been structured to provide flexibility during the early refurbishment phase, while the developer secures a tenant and fitout specification.
Mortimer Street Capital acted as funding adviser throughout the transaction, sourcing and structuring the facility on behalf of the borrower.
Justin Trowse, managing director for Mortimer Street Capital, says: “This transaction demonstrates the continued appetite from specialist lenders to support well-positioned redevelopment opportunities.
“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.”
Marios Theophanous, credit manager at London Credit, adds: “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.”
