Investor and developer secures loans worth £12.9m

Martley Capital Group, a real estate investment platform founded by entrepreneur Richard Croft, has arranged for investors to provide £12.9m of mezzanine loans secured by two industrial and social housing assets in Leeds.

The two separate loans have been advanced to companies directed by Leeds-based investor and developer Daniel Newett.

They have been provided by the vehicle Martley Capital Gap Financing Finco II Ltd and will be used to refinance existing debt, fund works to accommodate new tenants and provide a cash reserve for debt servicing during rent-free periods.

The loans are secured against two Leeds assets in the industrial and social housing sectors, with space in excess of 570,000 sq ft.

Martley said the business plan includes a long-term hold for the assets as they are intended to be cornerstone assets in the sponsor’s core income portfolio.

The sponsor plans to secure new leases to improve income and value in the short-term while working on a longer-term strategy for change of use.

Newett has 15 years’ experience operating in the UK commercial and residential real estate industry and is shareholder of Avant Homes and co-founder of Berkeley DeVeer.

Tom Tunley, director of debt capital markets, part of the Martley Capital Group, said: “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 we believe to be are highly deliverable.”

The deals form part of the Martley Capital Group’s “gap financing” strategy to provide loans to borrowers who need to refinance or who have existing loans that have suffered LTV breaches due to declining market values.

Prior to founding the Martley Capital Group in December 2023, Croft was the founder and executive chairman of M7 Real Estate, a €7bn pan-European real estate asset manager that was sold to Oxford Properties in 2021.