Leumi UK leads £42.9m loan-on-loan refinancing for commercial property portfolio
Posted: 22nd April 2025 | Share
Specialist real estate lender Leumi UK has led on a c. £42.9m loan-on-loan facility to Martley Capital Group to refinance their existing loan book secured against 20 underlying assets across all sub-sectors.
Martley Capital, a full-service real estate investment management platform and existing client of Leumi UK, is acting as Sponsor in this transaction, for the underlying loan portfolio that was originated by its UK debt vehicle, Tunstall Real Estate Credit II Lendco S.à r.l., the Borrower.
The portfolio is well diversified, and all loans are performing with assets progressing well against their underwritten business plans, while capex initiatives are being progressed alongside positive letting activity.
The new facility was originated and co-ordinated by Leumi UK, with Cynergy Bank co-lending on the deal, which has refinanced the Borrower’s existing loan-on-loan facility.
The complex transaction represents Leumi UK’s first portfolio style loan-on-loan financing and highlights the business’ customer-centric approach and commitment to delivering bespoke funding solutions tailored to its clients’ specific needs.
Dan Boakes, Managing Director of Debt Capital Markets at Martley Capital Group, added: "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."
Oliver Stenning, Relationship Director at Leumi UK, commented: “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.”
Mike Knox, Head of Financial Institutions at Cynergy Bank, said: “We’re delighted to have worked with Leumi UK and Martley on this refinance, which demonstrates our growing presence in the back leverage market.”