Martley Capital Group secures £90m in fresh debt for The Mailbox.
- Leumi UK extends a £65m loan to aid refinancing efforts.
- The refinancing halts the sale of the iconic building.
- Investors in Mailbox REIT benefit from potential capital recovery.
- The transaction exemplifies unprecedented speed and precision.
On Tuesday, 13 July, it was announced by the asset manager of The Mailbox, Martley Capital Group, that approximately £90 million in new debt had been secured. This includes a significant £65 million loan from the London-based lender, Leumi UK. This financial move is essential for refinancing and recapitalising the development, positioning it for future success in Birmingham’s city centre.
The refinancing agreement effectively halts the anticipated sale of The Mailbox, allowing investors within the Mailbox REIT to potentially benefit from capital recovery as the real estate market progresses from its current low point. A report on Martley Capital Group’s website highlighted the strategic importance of this move for shareholders.
Dan Boakes, managing director of debt capital at Martley Capital Group, emphasised the significance of The Mailbox as a foundational asset within their portfolio. He praised Leumi UK for their ability to exceed expectations, noting their exceptional agility and efficiency. According to Boakes, the lender completed full credit approval in under three weeks, demonstrating remarkable speed and precision.
Leumi UK’s involvement in the refinancing of The Mailbox marks their debut transaction with Martley Capital Group. Oliver Stenning, relationship director at Leumi UK, expressed satisfaction with aiding the recapitalisation of The Mailbox, recognising it as a substantial mixed-use asset within Birmingham’s city centre.
The Mailbox is considered one of the largest mixed-use developments in the UK outside London, with its history as a former Royal Mail sorting office. Currently, it hosts a variety of establishments including high-end retailers like Harvey Nichols, as well as BBC Birmingham, an Everyman cinema, numerous bars and restaurants, and two hotels.
The Mailbox’s refinancing marks a pivotal moment for Martley Capital Group and its investors, promising future growth potential.
