Specialist finance provider Octopus Property (“OP”) today announced that it has completed an urgent £4.2 million acquisition bridge for a long standing broker who had been let down when another lender failed to deliver.
Having had one false start, Steve Eades of REF Capital, who also provided the borrower with a second charge mezzanine strip, introduced the deal to OP’s Head of Sales, D’mitri Zaprzala, knowing that his borrower had only days to complete. The asset, the overseas borrower and the debt structure presented the sort of complex challenges that OP is renowned for resolving with speed, certainty and flexibility.
The asset, a prominent commercial site in Greater London with the benefit of planning consent for redevelopment into a £13.5 million GDV mixed use scheme, was occupied by a number of sitting tenants, many of whom require compensating before vacant possession can be achieved. With the benefit and comfort of having one of the market’s most competitive development funding teams, OP were able to structure their facility in a fashion that increased the borrower’s initial net loan, lowered the rate and provided them with certainty that the acquisition bridge would lead straight into a development facility without fee duplication and further valuation costs.
D’mitri Zaprzala, Head of Sales, Octopus Property, commented:
“Having been a market leader since 2009 and seen various waves of lender come and go, we know how important it is to put certainty and unparalleled customer service at the heart of everything we do. There’s nothing worse than being let down by a lender, so when we issue terms we do so knowing that we will deliver exactly what we promise, no matter what the challenges or the time constraints. We’ve developed exceptionally strong relationships with advisers like REFCap and take great pride in helping them deliver for their clients – without fail. We’ve actively enhanced our product offering over the last six months to become the foremost “Lifecycle-Lender” in the market and this is a prime example of an experienced lender being able to support both the acquisition and development of a great asset, introduced by a great adviser.”
Steve Eades, Partner, REF Capital, commented:
“We’ve worked with Octopus Property for many years now and can say without doubt that this was the biggest lending challenge that we’ve presented to them. The borrower structure alone would be too complex for most lenders and when you add in the asset complexities, our second charge mezzanine loan and the time constraints, we knew that this was a big ask. As always, the service was first class, the urgency was understood immediately and the complexities of the deal were simply taken in their stride. There was absolutely no room for slippage so we put our complete faith in OP’s ability to deliver and they certainly didn’t let us down. This is the second time in recent months that we’ve successfully provided an in-house mezzanine facility behind OP’s first charge and demand for the combined offering is proving to be very strong. Having the ability to transfer from a commercial bridge on to a full development facility with no hassle is also a massive benefit to our client. Working with a lender who puts the borrower first, genuinely understands real estate and always delivers on its promises is invaluable. We’re already on to our next deals with Octopus which really says it all”.
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 May 2017.