Martley Capital provides £16.5m senior bridge loan to the Scotch Corner Designer Village development site

Martley Capital has provided a £16.5m senior bridge loan secured against Scotch Corner Designer Village development site. Scotch Corner Designer Village is a 50‑acre development located at the prominent junction of the A1(M) and A66 – one of the UK’s busiest intersections, with c.29 million vehicles passing annually. The scheme benefits from full planning consent for 182,500 sq ft of retail, leisure, cafés and restaurants (Phase 1), 115,000 sq ft for one of the UK’s largest home and garden centres (Phase 2), and a further 120,000 sq ft of outlet space pending approval (Phase 3). Groundworks have been completed and the first steel frames erected, significantly de‑risking the initial development phase.

Leasing momentum is strong, with 80% of Phase 1 either exchanged, in solicitors’ hands or at Heads of Terms, including commitments from leading brands. The development and operation of the scheme is being led by an experienced team headed by sponsor Simon Waterfield, with a fixed‑price build contract in place with Tier 1 contractor Bowmer + Kirkland.

The 6-month facility will be refinanced by a new senior and mezzanine package at the end of the term. This loan represents the ninth transaction in the Martley Capital Gap Financing Series, which provides flexible capital solutions for acquisitions, refinancings and situations where borrowers require funding in the ‘gap’ traditionally served by senior lenders. Martley continues to see a strong pipeline of opportunities across the UK and Europe, typically up to 70% LTV.

Richard Croft, Chief Executive at Martley Capital said “Scotch Corner Designer Village is one of the most compelling retail‑led development opportunities in the UK, combining exceptional location fundamentals with strong pre‑letting momentum and an experienced delivery team. Our £16.5m facility provides the sponsor with the flexibility needed ahead of the long‑term financing package, and we are delighted to support the next stage of progress on a scheme that is already attracting significant occupier interest. This transaction also marks the ninth loan in our Gap Financing Series, reflecting the continued demand for agile capital solutions in a market where traditional lenders remain selective.”