Martley Capital turns to Birmingham for UK regional office strategy
Investor picks up Temple Row office
By Paul Norman
CoStar News
3 March 2025 | 14:19
Martley Capital has bought 4 Temple Row, Birmingham for more than £5 million, or a net initial yield in excess of 11.5%, as part of its UK regional office investment strategy.
The freehold Grade A office in the Colmore Business District was extensively refurbished in 2017, to provide Category A and Category A+ offices. The asset is multilet with occupancy of 88% and a weighted average unexpired lease term to breaks of 2.2 years. Martley said that created the opportunity to increase the rent by letting vacant space and regearing existing leases.
Martley has a strong conviction in the UK regional office market, believing that many offices are undervalued due to a “bifurcation” in the market, with the occupier market strengthening, leading to rental growth, whilst the investment market demonstrates limited liquidity and falling values.
Martley said its team is in the process of identifying target assets in regional towns and cities across the UK which provide “attractive day-one yields with scope to further improve rental income through proactive asset management and targeted capital expenditure”. The company believes that as inflationary pressures ease and interest rates fall, valuations should improve as investors return to the market.
Rory Finnan, managing director, said in a statement: “The acquisition of 4 Temple Row underscores Martley Capital’s strong belief in the resilience and recovery of the regional office market. The asset was acquired at an attractive entry price and provides us with an opportunity to deliver significant value through proactive asset management.”
In the fourth quarter 2024, Martley Capital also bought Eclipse in Marlow, a Grade A office building.
Martley Capital Group is real estate investment advisory platform whose activities cover investing, lending, assets and funds. It was established in 2023 by chief executive Richard Croft with more than 40 staff, five offices across the UK and Europe and circa £900 million in assets under management across 20 mandates. The business has launched a number of new funds and individual transactions, with an opportunistic and value-add focus, covering credit, equities and direct real estate.
Martley Capital was represented by Knight Frank. Click here for the full article.
