Martley Capital provides loans worth £12.9m to Leeds developer and investor

Martley Capital Group, the new real estate investment platform founded by real estate entrepreneur Richard Croft, arranged for investors to provide £12.9m of mezzanine loans secured by two industrial and social housing assets in Leeds.

The two separate loans have been advanced to companies directed by prominent Leeds-based investor and developer Daniel Newett and sit at 44.4 per cent to 65.1 per cent loan-to-value (LTV) in the capital stack.

The loans will be used to refinance existing debt, fund works to accommodate new tenants and provide a cash reserve for debt servicing during rent free periods.

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The loans are secured against two unnamed Leeds assets in the industrial and social housing sectors, with space in excess of 570,000 sq ft.

Tom Tunley, director of Debt Capital Markets, part of the Martley Capital Group.Tom Tunley, director of Debt Capital Markets, part of the Martley Capital Group.
Tom Tunley, director of Debt Capital Markets, part of the Martley Capital Group.

The business plan includes a long-term hold for both assets as they are intended to be cornerstone assets in the sponsor’s core income portfolio. During the term of the loan, the sponsor intends to execute new leases to maximise income and value in the short term whilst simultaneously commencing a longer-term strategy for change of use.

Daniel Newett has over 15 years' experience operating in the UK commercial and residential real estate industry and is shareholder of Avant Homes and co-founder of Berkley DeVeer.

Tom Tunley, director of Debt Capital Markets, part of the Martley Capital Group, inset, said: “I am pleased to have completed these financings with Daniel, it is testament to the Martley group’s lending appetite and ability to deploy capital into assets with a value-add profile.

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"Daniel has a fantastic track record of buying well and delivering value for himself and his partners. The two assets are very well located and provide multiple routes for the sponsor to create value through various asset management initiatives which have been carefully structured and we believe to be are highly deliverable.”

Mr Newett added: “Martley Capital have been very good to work with on this transaction and have demonstrated great flexibility in their approach, which I believe is under pinned by their underlying knowledge of the real estate which enabled a great outcome on these two assets.’’

These latest deals form part of the Martley Capital Group Ltd’s Gap Financing strategy to provide loans to borrowers who need to refinance or who have existing loans that have suffered LTV breaches due to declining market values.

In January Martley Capital arranged a £32.25m mezzanine loan to refinance a portfolio of five UK retail warehouse assets owned by Tristan Capital Partners’ European Property Special Opportunities 3 Fund in its first deal since launching in December 2023 with more than 40 staff, five offices across the UK and Europe and circa £900 million in assets under management across 19 mandates.

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The business said it has launched several new strategies, with an opportunistic and value-add focus, covering credit, equities and direct real estate, to take advantage of current dislocation in the real estate markets.

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