Octopus Property provides £31.5m for 300 home development
Specialist property lender Octopus Property has provided an established London property developer with a £31.5m loan to refinance a 300-home mixed-use development scheme in South West London.
The new facility on the fully consented scheme, which has a current Gross Development Value of c. £210m, will enable the borrower to submit an enhanced planning application.
Dominic Gibson, fund manager at Octopus Property, said: “Despite the significant growth of the business in recent years, working with repeat borrowers and introducers continues to be an important part of our philosophy.
“Since being introduced to the borrower by JLL two years ago, we have been impressed with both their business plan and their ability to deliver it.
“The new facility will provide much needed flexibility and allow them to enhance an already strong scheme, one which appeals to us due to the mix of affordable housing, private housing and commercial space.
“Demand for our comprehensive range of products continues unabated, and this sizeable loan clearly demonstrates our ability to fund borrowers at a speed and in a fashion that mainstream lenders simply can’t or won’t accommodate.”
George Braithwaite, director at JLL Residential Capital Markets, added: “Having worked with the borrower since the outset of this project, we are pleased to have been able secure this next phase of funding for them.
“We’ve worked with Octopus Property for several years and never doubted that they would deliver upon their promises once we had agreed terms.
“Their appetite and ability to complete large and complex loans in such short time periods is exceptional, and the way in which they conduct their business provides invaluable reassurance to all parties involved.
“Completing a c.£31.5m loan within 10 days speaks for itself and we very much look forward to completing future loans together.”
The enhanced development of the four acre freehold former industrial site will maintain the currently consented 300 residential units, of which 90 will be affordable, whilst providing c. 35,000 sq ft of additional space.
Funded by Octopus Property’s Commercial Real Estate Debt Fund II, the facility represents one of Octopus Property’s largest ever single loans and helps maintain the momentum that saw Octopus Property lend a record £800m in 2018.
JLL Residential Capital Markets acted as broker.