A major refinancing deal has been completed for Birmingham’s iconic Mailbox.
- Martley Capital Group confirmed securing £90m of fresh debt.
- Leumi UK, a London-based lender, provided £65m towards this refinancing.
- This development halts the sale of the building, benefiting Mailbox REIT shareholders.
- The Mailbox stands as one of the largest mixed-use developments in the UK outside London.
Martley Capital Group, the asset manager of the Mailbox in Birmingham, has successfully completed a significant refinancing operation. The group secured approximately £90m in new debt, with London-based Leumi UK contributing £65m to the refinancing efforts.
The freshly secured funds effectively prevent the sale of the Mailbox building, a strategic move expected to offer Mailbox REIT shareholders promising capital recovery as the real estate sector recovers from its downturn. A report from Martley Capital Group emphasised the importance of the refinancing deal to the company’s broader financial strategy.
Dan Boakes, managing director of debt capital at Martley Capital Group, praised the partnership with Leumi UK. He stated, “The Mailbox in Birmingham is a key cornerstone of our portfolio, and we needed a lender who could not only navigate the complexities of this deal but exceed our expectations. Leumi UK’s agility and efficiency, completing full credit approval in under three weeks, were commendable.”
Oliver Stenning, relationship director at Leumi UK, expressed satisfaction with their inaugural transaction with Martley Capital Group. He highlighted the significance of enabling the recapitalisation of the Mailbox, a landmark mixed-use property situated in Birmingham’s city centre.
The Mailbox itself is renowned as one of the UK’s most significant mixed-use developments outside of London. Originally a Royal Mail sorting office, it now accommodates a variety of tenants, including high-end retailers Harvey Nichols, Gieves & Hawkes, James Lakeland, as well as BBC Birmingham, an Everyman cinema, multiple bars and restaurants, and two hotels.
This refinancing deal marks a pivotal development for the future of Birmingham’s Mailbox, reinforcing its status as a key urban landmark.
