Octopus Real Estate, part of Octopus Group and a leading UK specialist real estate lender and investor, has completed a £19 million loan secured on a site with planning consent for an 88-unit retirement living scheme in Kew, London, within just five days.
The vacant site, a former Thames Water treatment plant, was previously used to service the famous Mortlake Brewery. The 12-month loan has refinanced the borrower’s previous debt and released additional equity for ongoing project costs. The site occupies a prime London location on the shores of the River Thames and within close proximity of the Royal Botanic Gardens.
Octopus Real Estate has consistently supported the commercial real estate sector throughout the Covid-19 pandemic. This is the twelfth loan of more than £10 million completed by Octopus Real Estate since March 2020, with £350 million of short-term lending having been completed by Octopus Real Estate’s commercial team during this period.
CBRE Debt & Structured Finance advised the borrower and introduced the urgent funding requirement, while Damian Keeling of Savills undertook the urgent asset valuation.
Dominic Gibson, Investment Director, Octopus Real Estate, commented:
“This five-day completion time shows what sets us apart as a specialist lender, complementing our expertise as an equity investor in the retirement asset class. The loan highlights our desire and ability to fund high quality assets and borrowers, supporting sub-sectors that are underpinned by long-term demand from end users. We believe that there is significant opportunity for investors, developers, and operators to reduce the current undersupply of high-quality retirement living stock in the UK, and we look forward to continuing our support of the retirement sector.”
Chris Gow, Executive Director, Debt & Structured Finance, CBRE comments:
“An ageing population, and a supply and demand imbalance in the UK has made the retirement living sector a compelling proposition for investors and lenders alike. Octopus’ first-hand knowledge of the retirement living, and care home sectors provided significant comfort that the borrower’s urgent funding requirement could be met. We were hugely impressed with the speed at which Octopus delivered the loan and are delighted to have completed another transaction in this buoyant sector.”
Octopus Real Estate recently released a report on the opportunities within the retirement living sector in a post-pandemic world. To read the report, please follow the link here.
For journalists in their professional capacity only. Personal opinions may change and should not be seen as advice or a recommendation. Octopus Real Estate is the trading name of Octopus Investments Ltd (Reg No 03942880), Bridgeco Ltd (Reg No 6629989), Fern Trading Group Ltd (Reg No 6447318), Nino Ltd (Reg No 9015082), Octopus Healthcare Development Ltd (Reg No 03788979), ORE Lending Ltd (Reg No 12908588) and Octopus Co-Lend Ltd (Reg No 8913299), all registered in England & Wales at: 33 Holborn, London, EC1N 2HT, and Octopus Real Estate S.ar.l. (Reg No B189290) registered in Luxembourg at: 412F, Route d’Esch, Grand Duchy of Luxembourg, 2086, Luxembourg. Octopus Investments Ltd and Octopus Co-Lend Ltd are authorised and regulated by the Financial Conduct Authority. Issued by Octopus Real Estate. Issued August 2021.