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The iconic Mailbox complex in Birmingham is no longer up for sale following the completion of a new financing deal. London-based Leumi UK has provided a £65 million loan to Martley Capital Group to refinance the mixed-use building. This new arrangement ends the sale process that began last year.
Additional funds were raised through a separate loan note issued by Mailbox REIT, the trust that owns the building, which effectively concludes the previous lender Deutsche Bank’s involvement. Deutsche Bank was reportedly owed around £100 million.
Originally a Royal Mail sorting office, the 1.07 million sq ft Mailbox has been transformed into a major mixed-use destination, including office space for BBC Midlands, a co-working hub, Everyman cinema, and various shops, bars, and restaurants. It generates about £12 million annually in rental income.
The property was put on the market last November with a price tag of approximately £120 million. Property agency JLL was tasked with finding a buyer, and Birmingham-based developer SevenCapital was among the interested parties.
Martley Capital Group, managed by Richard Croft, took over the asset management of the Mailbox earlier this year. Dan Boakes, managing director of debt capital markets at Martley Capital, praised Leumi UK’s role in the successful transaction. Oliver Stenning, relationship director at Leumi UK, expressed enthusiasm for the deal and the opportunity to further develop their relationship with Martley Capital Group.
