Martley Capital Group has arranged £12.9m in mezzanine loans for Leeds-based investor and developer Daniel Newett. The loans, secured against social housing and industrial assets totalling 570,000 sq ft, will be used to refinance existing debt, support tenant accommodation works, and create a cash reserve for debt servicing.

The loans, provided to companies directed by Newett, range from 44.4% to 65.1% loan-to-value. The assets are intended for long-term holding, with plans to maximise income through new leases and consider changes of use in the future.

Tom Tunley, director of debt capital markets at Martley Capital, expressed satisfaction with the transaction, highlighting Martley’s capability in deploying capital into value-add assets. He remarked, “Daniel has a fantastic track record of buying well and delivering value for himself and his partners. The two assets are very well located and provide multiple routes for the sponsor to create value through various asset management initiatives which have been carefully structured and are highly deliverable.”

Newett acknowledged Martley Capital’s role in the successful transaction, noting their flexibility and understanding of the real estate involved. “Martley Capital have been very good to work with on this transaction and have demonstrated great flexibility in their approach, which I believe is underpinned by their underlying knowledge of the real estate, enabling a great outcome on these two assets,” said Newett.

These transactions are part of Martley Capital’s gap financing strategy, offering loans to borrowers needing to refinance or address LTV breaches due to declining market values. Earlier this year, Martley arranged a £32.25m mezzanine loan to refinance a portfolio of five UK retail warehouse assets.

Martley Capital Group, led by Richard Croft, who previously founded M7 Real Estate, continues to expand its presence in the UK and European markets, managing around £900m in assets across 19 mandates.

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