The first deal secured £15.1m for a 61-apartment scheme in Chertsey, Surrey (pictured above).
This consisted of a £12.9m senior loan from Amicus Property Finance – which was arranged by Arc & Co – and a further £2.2m in preferred equity from Grasslake UK Investments Limited.
Bridge House – an early 2000s office building – is set for refurbishment before being extended to provide 39 one- and two-bedroom micro-apartments and 22 standard-sized one- and two-bedroom apartments close to Chertsey Bridge and the River Thames.
Prices start from £265,000 and the scheme has an estimated GDV of £20.4m.
The second funding secured £5.2m for a 25-unit, build-to-rent scheme in Farnborough, Hampshire.
Octopus funded a £3.9m senior loan – which was also arranged by Arc & Co – with a further £1.3m in mezzanine finance from a private funder arranged by Savills.
Twenty-five two- and three-bedroom maisonettes off Westmead in Farnborough town centre will be refurbished and reconfigured to create high-spec flat shares for rent on a room-by-room basis.
The scheme has an estimated GDV of £6.2m and is predicted to offer a gross rental yield of 12.4%.
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“Now that we have funding in place, we hope to start construction imminently,” said Jeremy Beck, development director at Inspired Asset Management.
“These are two contrasting projects with one being for sale and the other for rent, but both will provide high-quality, efficiently designed homes in emerging commuter towns, where there are excellent prospects for income and capital growth.
“Chertsey is an employment hub in its own right, while Farnborough offers affordable living just 34 minutes from central London, appealing to young professional buyers and renters."
Keith Aldridge, managing director at Amicus Property Finance, added: “We are delighted to have been able to support this project – a relatively complex deal, driven to success by an experienced and proactive developer and broker, plus valuers Kempton Carr Croft and FieldFisher, who managed the legalities.
Emma Burke, head of development origination at Octopus Property, added: “Having received the introduction from Arc & Co – one of our key partners – we were delighted to work together to fund Inspired’s latest development scheme with our new 65% LTGDV low-cost senior stretch development product.
“This is an extremely well-located residential scheme and forms part of an exciting development portfolio."