£17.22m commercial loan turned around in 10 days by Octopus Property

By Bridging Loan Directory 4th June 2018

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.”