Martley Capital completes three UK real estate credit deals across London
Martley Capital completes three UK real estate credit deals across London
Martley Capital has completed three loans through its ‘Gap Financing’ lending platform, providing tailored capital solutions across office, mixed-use and development assets in London.
The transactions comprise two mezzanine loans and one whole loan facility, highlighting the increasing demand for flexible capital between senior debt and sponsor equity.
The first transaction involved the provision of mezzanine financing to support the refinancing and growth of a serviced office platform operating from three assets in the City and West End of London. The financing supports the acquisition of an additional office asset and a refurbishment programme to enhance the platform’s offering across Central London. Senior financing was provided by Mera.
Martley also provided mezzanine financing secured against a mixed-use asset in Putney. The business plan includes a programme of asset management initiatives, the introduction of new long-term commercial occupiers and the delivery of residential accommodation, creating a diversified income profile and multiple avenues for value creation. Senior financing was arranged by Martley and provided by Leumi UK.
The third transaction comprised a whole loan facility provided to Joseph Homes and secured against a consented PBSA development site in southeast London. The site benefits from planning consent for a large-scale student accommodation-led scheme, and the financing is a bridge to gateway 2, which will support the sponsor’s strategy to enhance the asset and position it for future institutional ownership.
Together, the transactions demonstrate Martley’s ability to provide flexible financing solutions across the capital stack, taking capital committed across the Gap Funding program to over £200m.
Tom Tunley, Head of Lending at Martley Capital, said:
“These transactions showcase exactly the type of opportunities our Gap Financing strategy has been established to support. In each case, borrowers required a flexible capital solution to bridge the gap between senior debt and sponsor equity, enabling them to execute business plans across a range of asset types and risk profiles.
We are seeing more and more demand for mezzanine finance to “top up” competitive senior debt terms, whereby the senior & mezzanine blended cost of debt is often below competing Whole Loan terms. We continue to see strong demand from sponsors that are seeking a partner that can move quickly, understand complexity and tailor financing to individual circumstances. With an active pipeline and growing investor appetite, we believe the market opportunity for gap financing remains compelling and expect to deploy between £150m to £200m during the remainder of 2026.”
Richard Croft, Chief Executive of Martley Capital, added:
“Completing three transactions in quick succession reflects the momentum we are building within our lending platform and the growing relevance of gap financing within today’s market.”
“As senior lenders remain disciplined and borrowers continue to seek capital solutions that support acquisitions, refinancing and asset repositioning strategies, we believe our ability to structure flexible financing across the capital stack is a significant differentiator. These transactions are a strong example of how we can partner with experienced sponsors to help unlock value in high-quality real estate and we expect to commit a further £200m over the next six months.”
