Leumi UK completes £21.4m loan to Martley Capital to support the acquisition of Grade A regional office portfolio

Real estate lender Leumi UK has completed a £21.4m loan to Martley Capital to support the acquisition of three Grade A office buildings in Newcastle, Liverpool, and Chester. The transaction marks the sixth deal between the two parties, highlighting Leumi UK’s commitment to developing trusted, long-term relationships with its clients.

The portfolio represents a total NIA of 270,000 sq ft, and benefits from 95% in-place occupancy, across 18 tenants. The three assets are Matalan’s 114,869 sq ft headquarters on Knowsley Business Park, located on the A580 between Liverpool and Manchester, Central Square South, an 85,048 sq ft office building in Newcastle, and One City Place, a 68,950 sq ft multi let building in Chester.

The transaction is part of Martley’s strategy of targeting assets in the regional office market that are currently undervalued following a period of elevated interest rates, with high construction costs, combined with a strengthening occupier market, driving a supply-demand imbalance. At the same time, limited liquidity in the wider investment market is generating attractive yield opportunities. The manager is in the process of identifying further assets across the UK and is targeting attractively-priced buildings where there is scope to further improve income through proactive asset management and targeted capital expenditure.

Dan Boakes Executive Managing Director at Martley Capital, said: “This deal would not have been possible without our close working relationship with Leumi UK, and the team’s clear understanding of the sector. This was a transaction with a demanding timeframe, so the team’s ability to work quickly and to deliver a financing solution tailored to our specific requirements, in just 24 days, was hugely appreciated. These are three attractive, high-quality assets and, with clear business plans to drive value, we believe they have a very bright future.”

Oliver Stenning, Relationship Director at Leumi UK, said: “The transaction aligns with Martley’s regional office investment thesis, targeting well‑located buildings with strong fundamentals acquired at a substantial discount to replacement cost. Over the past two years, we have built a strong and trusted relationship with Martley, with this loan marking our sixth transaction together. We look forward to continuing to grow our partnership and pursuing future opportunities as they arise.”