Octopus Real Estate completes £22m loan on the development of over 300 new homes in Derby city centre

By Bridging Loan Directory 11th October 2022

Octopus Real Estate, part of Octopus Group and a leading UK specialist real estate lender and investor, has provided a loan in excess of £22m on the development of 341 flats in Derbyshire.

The development loan – which has a 36-month term – will finance the creation of five blocks of flats; 260 one-bedroom units and 81 two bedroom units.

The developer is Birmingham-based Wavensmere Homes, advised by BBS Capital.

Nightingale Quarter will be built on vacant land which was previously the site of the Derbyshire Royal Infirmary.

The site just a 5-minute walk to Derby city centre and train station, and is also conveniently located 10 minutes away from the M1.

A 30-minute drive from the Peak District, future residents will be able to enjoy the best of both city and country life.

Derby has a fast-expanding economy and is the home to some of the world’s leading engineering, aerospace, and nuclear employers.

Andy Scott, Head of Residential Development, Octopus Real Estate, commented:

“At Octopus Real Estate we have been seeking opportunities that support regional development in line with the Government’s Levelling Up agenda.

By providing high-quality homes in exciting and enterprising Derby, Nightingale Quarter is sure to have a positive impact on the local community, and we’re delighted to help Wavensmere Homes achieve their vision.”

Matt Brighton, Commercial Director, Wavensmere Homes added:

“Derby sits at the heart of the country and is a core hub of the wider Midlands economy.

With several large employers in the local area such as Rolls Royce, Bombardier and the NHS, we’re certain Nightingale Quarter will provide much-needed accommodation as Derby’s economy continues to flourish.

We are pleased to be working alongside Octopus Real Estate to bring such an exciting project to fruition.”

Adam Buchler, Managing Director at BBS Capital, the debt advisor on the deal, concluded:

“Octopus acted as an efficient and flexible partner throughout the transaction and the deal proceeded smoothly, with a pragmatic approach to resolving the inevitable issues that arose.

This only endorsed Octopus as our choice of lender after what was a highly competitive process with strong appetite from a number of lenders for this opportunity.”