Leumi UK has led a £42.9 million loan-on-loan refinancing package for Martley Capital Group.
The facility refinances Martley’s existing debt, which is secured against a 20-asset portfolio spanning multiple commercial property sub-sectors.
The transaction represents Leumi UK’s first portfolio-style loan-on-loan facility and was completed in collaboration with Cynergy Bank, which co-lent on the deal. The underlying portfolio is managed by Martley’s UK debt vehicle, Tunstall Real Estate Credit II Lendco S.à r.l., and comprises performing loans backed by assets that are advancing steadily against their business plans.
Martley Capital, which operates as a full-service real estate investment management platform, acted as sponsor on the transaction. According to the firm, the assets continue to benefit from active capital expenditure programmes and positive letting momentum, reinforcing the underlying strength of the loan book.
Leumi UK coordinated the new facility, which replaces an existing loan-on-loan arrangement, offering Martley greater long-term stability for its debt fund.
INVALUABLE SUPPORT
Dan Boakes, managing director of debt capital markets at Martley Capital Group, said: “In our second transaction with Leumi UK, their support has once again been invaluable, demonstrating deep expertise in both complex financial structures and the commercial real estate market.
“This combination was crucial in understanding the unique requirements of this deal. With our refinancing secured, this high-performing loan portfolio is now well-positioned and provides longer-term stability for our debt fund.”
GOING THE EXTRA MILE
Oliver Stenning (pictured), relationship director at Leumi UK, added: “This strategic refinancing demonstrates Leumi UK’s expertise in underwriting back leverage and loan-on-loan transactions – an area of growing importance for debt funds in today’s market.
“Our commitment to going the extra mile for our clients is at the heart of our approach and in this case, our persistence and close collaboration with Martley, along with the co-lending support from Cynergy, enabled us to deliver a tailored solution that met their needs and reinforced our strong partnership.”
The deal also signals Cynergy Bank’s growing role in this specialist area of the lending market. Mike Knox, head of financial institutions at Cynergy Bank, commented: “We’re delighted to have worked with Leumi UK and Martley on this refinance, which demonstrates our growing presence in the back leverage market.”
