Octane Capital provides £11m development exit facility on luxury 11 unit scheme


Alex Tyrwhitt

London, 18 October 2018 – ‘Product-less’ lender, Octane Capital, today announced it has provided an £11m development exit loan to a client of Mayfair-based specialist finance broker, Arc & Co.

The loan is against a pre-practical completion luxury scheme in south east London comprising 11 units, each valued at a minimum £1m. To date, one of the units has sold and two have exchanged.

The one-year exit facility, at 70% LTV (net), has given the developer sufficient time to carry out the remaining work on the units and additional funds to boost both working capital and cash flow.

Alex Tyrwhitt, pictured, Head of Structured Finance, Octane Capital, commented:

“This was a complex loan involving multiple moving parts but the support we received from Arc & Co was second to none and helped us get it across the line ahead of schedule. We look forward to working on many more deals with John and the team in the months ahead. They’re a sophisticated broker that understand the mechanics of even the most complex loan structures.”

John Kerrigan, Director, Structured Finance, Arc & Co, added:

“The developer is a key client of Arc & Co but this particular scheme, despite strong fundamentals, had a number of complex issues to address that we knew would be beyond the comfort zone and skillset of many lenders. The Octane team are in a league of their own when it comes to complex loans and were pragmatic and persistent throughout.”