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Leumi UK and Martley Capital provide facilities totaling £65m to Tristan Capital to refinance Campus Reading

Posted: 14th January 2025   |   Share

Reading- Tristan

Real estate lender Leumi UK has provided a £38m senior lending facility to Tristan Capital Partners to refinance an office building in Reading owned by its European Property Special Opportunities 5 Fund (“EPISO 5”). This is Leumi’s third transaction with Tristan over the last 12 months.

Martley Capital Group, in partnership with Glade Capital, provided a £27m mezzanine loan taking total combined financing for the Reading asset to £65m.  

This mezzanine loan forms the fourth in the Martley Capital Gap Financing Series, which is intended to provide loans for new acquisitions or where borrowers need to refinance upcoming maturities, operating in the ‘gap’ where senior lenders previously were. Martley Capital has identified a strong pipeline of transactions where it can offer financing solutions in these situations in both the UK and Europe, typically up to 70% LTV.  

The loans are secured against a high-quality office building on the outskirts of Reading, known as Campus, Reading International Business Park. Tristan acquired Campus in December 2020 and undertook an extensive refurbishment, winning the BCO award for ‘Best Refurbished Workplace in South of England and South Wales’. The accommodation totals 385,416 sq ft and comprises Grade A amenity rich office space with excellent ESG credentials.

The business plan at the asset going forward is to achieve further new lettings to drive occupancy as the occupational market continues to improve, capitalising on tenant demand for best-in-class Grade A space and the diminishing supply due to lack of new development.

Tom Tunley, Director of Debt Capital Markets at Martley Capital Group said: “Closing this transaction prior to Christmas was a brilliant way to end the year for the Capital Markets team at Martley; it deepens our already well-established working relationship with both Tristan and Leumi UK, but also is a signal of intent going into 2025. We feel the partnership between the three companies is a perfect blend to enable the continuation of the value-add business plan following the tremendous work done to date by Tristan as well as the strong market fundamentals for high quality out of town offices in the Greater Reading area, a sector we have a high amount of conviction for”.

Gez O’Sullivan, Relationship Director at Leumi UK said: “This financing is a great example of what differentiates Leumi UK, showcasing our ability to effectively execute a transaction that required close collaboration. We pride ourselves on our granular sector-specific expertise and relationship-driven approach, and in Tristan and Martley, we are confident we have the right partners in place. There is a lack of quality regional office space in this country so, with its compelling business plan and strong fundamentals, Campus is very well positioned.”

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