Leumi UK has provided £44.4 million in senior debt to Mercia Real Estate for the refinancing of a Midlands industrial portfolio, with Martley Capital contributing an £18.7 million mezzanine loan. The combined £63.1 million financing package covers four sites across the region.
The transaction represents the third collaboration between Leumi UK and Martley Capital in the past year. Martley Capital introduced the deal and structured the mezzanine component alongside the senior debt facility.
Portfolio composition
Leumi UK structured the refinancing across two separate facilities to accommodate different business plans for assets within the portfolio. Telford Business Park forms the largest component, comprising two existing buildings and 46 acres of development land with planning consent for 935,000 square feet of Grade A industrial space across five units.
The refinancing is intended to bridge to the first phase of development at Telford Business Park, which Mercia Real Estate has identified as a priority.
“We really value Leumi UK’s flexibility, their understanding of our objectives, and their commitment to working closely with us to develop a financing solution that will enable us to achieve our goals with these assets, and unlock the clear value we see at Telford Business Park in particular,” said Sam Clark, chief executive at Mercia Real Estate.
Lender activity
The deal follows a period of activity for Leumi UK’s property finance division in 2024. The lender has developed a focus on the industrial sector, particularly for development opportunities in accessible locations.
Tom Tunley, director at Martley Capital Group, commented: “This transaction demonstrates our ability to understand clients’ complex requirements and deliver flexible solutions alongside other relationship-driven lenders.”
Oliver Stenning, relationship director at Leumi UK, noted the lender’s experience in the industrial sector and stated the assets are “well placed to deliver value going forward.”
The financing structure reflects the current approach among specialist lenders to tailor facilities to specific asset strategies within mixed portfolios, particularly where development components are involved.
