London, 10 June 2019 – Octopus Real Estate, part of the Octopus Group, has agreed to provide an experienced London property investment, development and management business, with a £28.4 million refinancing facility on a Private Rented Sector scheme in Ilford, London.
Due for practical completion in July 2019, the scheme will deliver 106 residential units for rent, with a mix of one, two and three-bed homes. The new facility will refinance the current development loan on the scheme and enable the borrower to complete refurbishment works on the former office building.
Located between Ilford and Seven Kings, within the London Borough of Redbridge, the local area is currently undergoing extensive commercial and residential regeneration. Its desirability is set to increase further with the imminent arrival of Crossrail, with two train stations in walking distance, providing direct access to London Liverpool Street in under 20 minutes.
Secured by way of a first charge on a 24-month term with an LTV of 68%, the loan continues the longstanding relationship between Octopus Real Estate and the borrower, which has experience in delivering and managing similar schemes.
Paul Carmody of Outside the Box Capital Solutions acted as the advisor on behalf of the borrower.
D’mitri Zaprzala, pictured, Head of Sales at Octopus Real Estate, commented:
“Having worked with both the borrower and Paul on many previous schemes, we are pleased to have been able to provide this significant refinancing facility. It’s an exciting PRS scheme which will deliver much needed new build residential stock, in a sought-after location experiencing high demand for good quality rental properties.
“We recently announced the consolidation of our property lending and healthcare expertise into Octopus Real Estate, which puts us in an even stronger position as we continue our expansion in the real estate sector. We have a first-class team and access to significant capital, allowing us to be the lender of choice for borrowers requiring larger loans in a short timeframe.”