Specialist property lender Octopus Property, part of the Octopus Group, has provided an established London property developer with a £31.5 million loan to refinance a major 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. £210 million will enable the borrower to submit an enhanced planning application. The enhanced development of the 4-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.
The scheme is located only a short walk from two Underground stations and a mainline station, in an area that is hugely popular with young professionals looking to buy and rent in London. With easy access to Victoria, London Bridge, Waterloo, The City and the West End, it is also in high demand from office occupiers
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 £800 million in 2018.
Dominic Gibson, Fund Manager at Octopus Property, commented:
“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 to 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 on 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 ten days speaks for itself and we very much look forward to completing future loans together.”
JLL Residential Capital Markets acted as broker.
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 January 2019.