Octopus Real Estate Reading time: 2 mins

Octopus Property launches unique residential development-light product

2 May 2018
  • Targeting SMEs and smaller developers
  • Nine loans, totalling £10 million, have been originated to date
  • The ninth product launched since 2017 as part of Lifecycle Lending proposition

Specialist property lender Octopus Property, part of the Octopus Group, today announces the launch of a development-light product, to meet the increasing demand from SMEs and smaller developers requiring finance for residential schemes that sit outside the traditional refurbishment or development lending parameters.

The new intermediate development product, for projects with build costs between £0.5 and £1.5 million, is the latest innovative offering from Octopus Property as it continues to expand its range to meet the growing demand from property professionals for competitively priced and

flexible financing solutions, delivered at speed. It is targeted at schemes that may require more technical support than a typical refurbishment, but are shorter-term, require less monitoring and are lower down the risk curve than a normal development project.

To date Octopus Property has provided nine loans, totalling £10 million, for a diverse range of schemes, including the conversion of an office in Leytonstone, North London, into 10 apartments where Octopus Property agreed on a £1.4m land loan and a £0.6 million construction facility.

Key features of development-light product include:

  • 8.0% fixed rate per annum
  • A maximum loan-to-cost of 85%
  • A maximum loan-to-gross-development-value of 70%
  • A loan size of £0.5-1.5 million

Gavin Eustace, Head of Development at Octopus Property, commented:

 “We continue to leverage our market knowledge and relationships to better understand the challenges facing property professionals in accessing development finance, and believe that this product is ideally positioned to fill a gap in the market.

“With wider macro uncertainty affecting the sector, smaller developers are increasingly looking at ways to re-position existing properties to realise value or embark on smaller ground-up schemes which require a new type of funding to match the risk profile of the project.”


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 2018.