Octopus Real Estate completes more than £35m of new lending through the Greener Homes Alliance initiative



Octopus Real Estate, part of Octopus Investments and a leading specialist real estate investor and lender, has announced the recent completion of four further loans as part of its Greener Homes Alliance initiative with Homes England.

The four completed loans total more than £35m and will fund the development of 124 new homes in Dover, Wandsworth, Wimbledon and Tottenham ─ delivered by four SME developers.

The first loan will fund the development of 27 homes ─ six of which will be affordable ─ in Nonington, Dover. The development will regenerate a site which was previously a former factory and storage yard.

In line with the Alliance initiative, the homes will be designed to have minimal environmental impact. No fossil fuels will be used to power the completed homes, they will instead be heated by environmentally friendly air source heat pumps.

In Wandsworth, London, the Alliance is supporting the development of eight residential apartments.

As part of a conversion scheme, the development will regenerate a disused building into energy-efficient homes.

As an existing asset is being regenerated, the development significantly reduces new carbon emissions being expended throughout the build.

The third loan will fund the development of seven residential apartments in Wimbledon, London, equipped with Solar PV Panels and Air Source Heat Pumps to achieve EPC A ratings on all units.

Through partnering with a local developer, the loan will facilitate the regeneration of a previously vacant café building into much-needed, energy-efficient housing.

The final loan will support the largest Greener Homes Alliance deal to date: the building of 76 residential apartments and two commercial units in Tottenham, London.

 Nick White, Head of Development Origination, Octopus Real Estate, said:

“We are extremely proud of the impact our Greener Home Alliance initiative is having on supporting developers looking to make greener decisions for their projects.

Our partnership with Homes England has delivered amazing homes, meeting the highest environmental standards while having a lasting positive impact on local communities.

As a B-Corp, Octopus Real Estate is committed to providing quality, sustainable homes, and accelerating green initiatives within the property market.”

The Greener Homes Alliance, formed with the Government’s housing and regeneration agency Homes England, pledged to commit £175 million in providing both loan finance and expert support to SME housebuilders, enabling them to build more high-quality, energy-efficient homes throughout England.

Homes funded must achieve a minimum Energy Performance Certificate (EPC) rating of B, with developers benefiting from increasing interest rate margin discounts on the loan as the energy efficiency of the homes increases above this (as measured using the Standard Assessment Procedure [SAP]). Homes achieving an EPC rating of A benefit from interest rate margin discounts of 2%.