Regional expansion and diversified product range sees Octopus Property reach £1bn loan book
- Cements position as leading UK alternative lender as real estate remains favourable asset class
- Diversified offering reflected in loan book split – residential 48%, commercial 31% and development 21%
- Strongest ever start to year including £36 million PBSA development loan and £31 million refinancing
Octopus Property, the leading UK specialist property lender and part of the Octopus Group, announces that its loan book has exceeded £1 billion, following a period of record growth underpinned by a diversified product offering and an increasingly UK wide remit.
Mario Berti, CEO of Octopus Property, commented:
“This is an incredible achievement for the business and is a testament to the hard work and commitment of the team. We wouldn’t have got where we are without the ongoing support of our intermediaries, who have enabled us to serve an increasingly diverse range of borrowers in our core markets such as London, as well as new regions across the UK.
“Despite the broader macro uncertainty, this success has been based on a combination of the inability and unwillingness of bank lenders to evolve, the favourable underlying drivers supporting UK real estate investment and our ability to stay ahead with flexible and comprehensive products, as well as great customer service. With the backing of the Octopus Group, which has £8.5 billion of assets under management, coupled with our growing and extremely experienced team, we are well placed to continue to increase our lending to borrowers throughout the UK.”
Following a record start to the year which has seen it commit more than £150 million of finance, Octopus Property is on track to lend a record £850 million in 2018/19, as it continues to see opportunities to provide a range of residential, development and commercial loans across both mainstream and alternative sectors, across mainland UK.
Recent highlights include:
- Commercial deals in Birmingham, Derby, Manchester and Edinburgh, taking the commercial loan book past £300 million
- A record £36 million development loan, funding a Purpose-Built Student Accommodation scheme in Coventry. Octopus Property is targeting a £1 billion development loan book, as it looks to capitalise on the favourable demand supply dynamics and supportive demographic shifts in its target sectors
- The launch of a single unregulated bridging product and changes to the refurbishment offering, the latter increasingly popular at a time when parts of the UK housing market are cooling. Introduced in direct response to borrower demand, they are latest in a line of innovative products underpinning Octopus Property’s comprehensive product suite
- A £31 million refinancing facility on a major mixed-use development scheme in South West London with a Gross Development Value of c. £210 million, demonstrating Octopus Property’s ability to compete in a market historically dominated by the more traditional forms of financing.
For journalists in their professional capacity only. Personal opinions may change and should not be seen as advice or a recommendation. We do not offer investment or tax advice. Issued by Octopus Property. Octopus Property is the trading name of Bridgeco Ltd (Reg No 6629989), Fern Trading Ltd (Reg No 6447318), Nino Ltd (Reg No 9015082), Octopus Property Lending Ltd (Reg No 7531926) and Octopus Co-Lend Ltd (Reg No 8913299), Registered Office: 33 Holborn, London EC1N 2HT, registered in England and Wales and Dragonfly Finance S.ar.l. (Reg No B189290) Registered Office: Parc d’Activité Syrdall, 6 Rue Gabriel Lippmann, L-5365, Munsbach, Luxembourg registered in Luxembourg. Octopus Property Lending Ltd and Octopus Co-Lend Ltd are authorised and regulated by the Financial Conduct Authority. Issued March 2019.