A 50-acre mixed-use site near Hitchin, Hertfordshire, has been acquired for £1.8 million with a £1.25 million acquisition facility from MERA, secured at 70% loan-to-value over 24 months.
The former commercial glasshouse site includes two bungalows, five acres of glasshouses previously used for commercial farming, and approximately 40 acres of farmland. The property was acquired with vacant possession.
Montpelier Private Finance introduced the transaction, which marked MERA’s first deal with this borrower. The financing required individual assessment of the residential, commercial and agricultural components due to the absence of standard lending templates for such mixed-use properties.
Financing structure
MERA evaluated the letting potential of the glasshouses, bungalows, outbuildings and farmland separately before structuring the facility. Legal support was provided by David Merson at gunnercooke, with Katherine Ilett at Savills conducting the valuation.
The borrower plans to restore the site to productive use through a phased approach. Short-term plans include letting the glasshouses, refurbishing and letting the two bungalows, and converting commercial outbuildings into smaller units for local occupiers. Longer-term objectives involve exploring planning opportunities for additional commercial space and potential redevelopment of portions of the glasshouse site.
Market context
MERA noted that UK glasshouse growers have faced pressure from elevated energy costs in recent years, resulting in specialist commercial land standing idle as rising heating bills have reduced the viability of year-round growing operations. Similar challenges have affected derelict properties across the South East, where vacant sites are being repurposed for alternative uses.
“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. “As our first deal with this client, getting comfortable with the opportunity quickly took proper diligence rather than a rate-card approach.”
The transaction reflects growing lender appetite for non-standard assets that require specialist assessment, particularly as investors seek opportunities in mixed-use and conversion projects. The financing structure mirrors broader trends in lettings portfolios, where diverse property types require tailored valuation approaches.
The site’s development trajectory will depend on securing tenants for the existing structures and obtaining planning consent for future commercial expansion.
