Leumi UK has provided £44.4m in senior loans to Mercia Real Estate to refinance a portfolio of industrial assets across four sites in the Midlands, with Martley Capital adding an £18.7m mezzanine loan.
The combined £63.1m financing marks the third transaction between Leumi UK and Martley Capital in the past 12 months. Martley Capital introduced the deal and structured the mezzanine component alongside Leumi UK’s senior debt.
Leumi UK structured the refinance across two facilities to align with different business plans across the portfolio. The approach reflected the lender’s flexibility in delivering bespoke funding solutions tailored to client needs.
Telford Business Park represents the largest asset in the portfolio, comprising two standing assets and 46 acres of development land with consent to build 935,000 sq ft of Grade A industrial accommodation across five new units.
Unlocking the development opportunity at the site is a key priority for Mercia, with the refinancing designed to act as a bridge to the first phase of development.
“We really value Leumi UK’s flexibility, their understanding of our objectives, and their commitment to working closely with us to develop a financing solution that will enable us to achieve our goals with these assets, and unlock the clear value we see at Telford Business Park in particular,” said Sam Clark, chief executive at Mercia Real Estate.
“Leumi UK have been fantastic partners for us and we look forward to working with them as we progress our ambitious business plan for this portfolio.”
The deal builds on what was a strong year for Leumi UK’s property finance team in 2025. The specialist real estate lender has built extensive experience in the industrial sector, positioning it to support development opportunities in conveniently located assets.
“We’re delighted to have worked with Leumi UK and Mercia Real Estate on this refinance,” commented Tom Tunley, director at Martley Capital Group. “This transaction demonstrates our ability to understand clients’ complex requirements and deliver flexible solutions alongside other relationship-driven lenders.”
Oliver Stenning, relationship director at Leumi UK, noted the lender was thrilled to provide a financing solution specifically tailored to Mercia’s business plan. “It is also pleasing to build on our trusted relationship with Martley Capital, in what is our third co-lending deal,” he said. “We have extensive experience in the industrial sector, and it is clear these conveniently located assets are well placed to deliver value going forward.”
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