Specialist property lender Octopus Property, part of Octopus Group, has agreed to provide Saudi Arabian investor, Snabil Limited, with a £12.7 million senior facility to fund the acquisition of a much sought-after site in Chiswick, West London, with the subsequent development of 21 residential apartments. An additional c. 4,300 sq ft commercial unit and basement car park will further increase the desirability of the scheme.
Construction of the apartments, comprising 19 one, two and three-bed units, is expected to take 18 months, with the Development Manager being Mayfield Property Group.
Located on Chiswick High Road, the development will benefit from the surrounding vibrant social setting, good schools and excellent infrastructure connections. The local Gunnersbury, Chiswick Park and Turnham Green stations connect Chiswick to Central London in less than 30 minutes.
The 27-month loan continues Octopus Property’s drive to grow its residential development loan book exposure in 2018, having already transacted in excess of £125m in the first five months of the financial year.
The broker on this deal was Daniel O’Neil from SPF Private Clients Limited.
Gavin Eustace, Head of Residential Development at Octopus Property, commented:
“This is a well-located site in a sought after residential area, where we anticipate strong demand for the completed units. Working alongside a developer who is backed by a construction company with a proven track record and extensive experience in delivering schemes across the capital gives us added confidence. We look forward to working with all parties on future developments.
“A combination of the favourable market conditions underpinning residential development, including a well-publicised shortage of stock and the low-interest rate environment, coupled with the strength of our offer, means we are well positioned to continue funding both new and existing borrowers looking for reliable and flexible senior development finance.”
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 September 2018.