£17.22m commercial loan turned around in 10 days by Octopus Property
Specialist property lender Octopus Property, part of the Octopus Group, provided Strawberry Star, a London-based investment and development company, with a £17.22m facility, secured against land located adjacent to Luton Parkway.
Showcasing its speed and flexibility, this was a £13.27m first charge loan with a £3.95m VAT loan on top, but as a single facility, and it was turned around in 10 days.
Strawberry Star required the loan to assist with the purchase of the asset. The property comprises of a 6.9-acre freehold site, which was previously occupied by the Vauxhall Van Plant, but now has planning for 685 residential units, a 209-key hotel, a medical wellness centre, retail and ancillary parking. The site has been cleared, levelled, decontaminated and enabled with all services and highways access.
Repayment will be by development finance, with a potential reduction coming from investor equity.
Prasanna Kannan, from the digital brokerage Native Finance, introduced the deal to Octopus Property:
“We were delighted to work with Octopus, they showcased a real understanding of the market, and worked to extremely quick timescales. Of the 300+ lenders we work with, Octopus are one of the leaders when it comes to efficient loan execution.”
Ludo Mackenzie, Head of Commercial Property at Octopus Property, said:
“We are pleased to be working with Strawberry Star, who are making serious in-roads into the UK market. Our thanks go to them and to Native Finance.”
Kekul Shah, Operational Director-Capital, Strawberry Star, said:
“The company has a vision of building homes in London commuter belts for various buyer categories, including first-time buyers. It was a pleasure working with Octopus Property and Native Finance. We are impressed with the speed and professionalism they displayed.”