Martley snares regional office trio for new fund

25 Feb 2026 | 13:35 | London | by David Hatcher

What Martley Capital has bought three regional offices for around £40m
Why It is deploying capital from its new MCRO Fund, which is focused on improving sentiment and conditions in markets outside the capital
What next Martley is in the process of identifying further target assets

Martley Capital has bought a trio of regional offices for a new specialist fund, Green Street News can reveal.

The manager, led by chief executive and former executive chairman of M7 Real Estate Richard Croft, has acquired assets in Newcastle, Chester and Liverpool for around £40m for its MCRO Fund.

It has bought the 85,000 sq ft Central Square South in Newcastle from Aberdeen; Matalan’s 114,800 sq ft headquarters at Knowsley Business Park in Liverpool, from a vehicle controlled by Matalan’s owning family, the Hargreaves; and the 69,300 sq ft One City Place in Chester from Federated Hermes.

The acquisitions have been made at a blended initial yield of 13.4%, with an average unexpired lease length of 7.6 years and significant reversionary potential. Tenants include HSBC, PWC, East Coast Trains, Sykes Cottages and DWF Law.

Martley is among an increasing number of investors gaining conviction in the UK regional office market, believing that many offices are currently undervalued due to a bifurcation in the sector – with the occupier market strengthening, leading to rental growth and reducing supply, while the investment market currently demonstrates limited liquidity and attractive yield profiles.

The manager is also in the process of identifying further target assets in regional towns and cities. The manager is focusing on day-one yields with scope to further improve income through proactive asset management and targeted capital expenditure.

Attractive entry prices

Croft said: “There are similarities to the industrial investment market in 2010, which is why the sector will be a primary focus for Martley over the next year. We have an ambition to invest at least a further £200m-plus into similar assets within the sector.”

Rory Finnan, managing director at Martley, added: “The acquisitions demonstrate Martley Capital’s strong belief in the resilience and recovery of the regional office market. The assets were acquired at attractive entry prices and provide us with an opportunity to deliver significant value through proactive asset management.”

Martley Capital was represented by NorthCap and King Street Real Estate, with Birketts as legal adviser.

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