Octopus Property passes £3 billion lending milestone

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Mario Berti

Specialist property lender Octopus Property, part of the Octopus Group, today announced that it has passed the £3 billion lending mark, following a period of record growth, representing a very strong performance in the current economic environment.

Mario Berti, pictured, CEO of Octopus Property, commented:

“£3 billion of lending is a fantastic achievement by everyone at Octopus Property. Whilst the real estate debt market has evolved almost beyond recognition since 2009, with the sector seeing many new entrants and departures, our mantra of simplicity, transparency and speed of execution has been the bedrock of our growth. Through the breadth of experience of the Octopus Property team and our unparalleled intermediary relationships, we have consistently been able to innovate to meet the needs of our increasingly diverse range of customers.”

Having passed the £2 billion lending mark in July 2016, the past 18 months have seen Octopus Property transacting record volumes on a monthly basis. Deals have included its largest ever investment facility, £31.3 million for a West London Permitted Development scheme, and largest development loan, more than £20 million for a Brighton residential scheme.

Since 2009, Octopus Property has built a reputation for offering property professionals a diverse range of competitively priced products that span the lending lifecyle. Originally focused on residential bridging, it branched into residential development in 2011 and commercial lending in 2013. Last year Octopus Property launched a mainstream commercial term product, the first by a specialist lender, as well as seven additional products, including Buy-to-Let and development exit ones.

Octopus Property’s growth has been supported by the £7 billion AUM Octopus Group, one of a number of sources of capital, providing Octopus Property with significant firepower. Alongside Octopus Group, Octopus Property has raised £400 million from institutional investors via two successive Commercial Real Estate Debt Funds, whilst Octopus Choice, a peer-to-peer platform for retail investors, provides another funding avenue. Octopus Property’s success has been underpinned through the building of a 63-strong first class team that draws all of its expertise from the UK real estate sector.

Simon Rogerson, CEO and co-founder of Octopus Group, added:

“Octopus Property is fast becoming one of the largest players in the UK specialist lending market. The fact it has now hit £3 billion of lending is testament to the strength of the team and their focus on delivering exceptional customer service by providing flexible and innovative financing solutions. Over the last year or so the business has grown rapidly by creating new products to meet an increasingly diverse range of borrowing requirements. It has also raised more institutional funds to support its lending activity as it looks to deliver compelling returns to investors who want exposure to the UK real estate market. We expect this growth to continue. It’s a fantastic business and I’m proud it’s part of the Octopus Group.”