The funding has been provided to Wavensmere Homes and Montane Partners for their £50m redevelopment of the North Place surface car park.

This site will host Arkle Court, a 3.5 acre development comprising 147 houses and apartments.

Arkle Court is the most central residential development in Cheltenham and received a resolution to grant planning in August 2024.

Site enabling works began in February 2025 with groundworks to commence in April.

Construction of the 75 three-bedroom townhouses and 72 one and two-bedroom apartments is anticipated to take two and half years to complete, with the first handovers scheduled for Q3 2026.

The scheme has been designed by architects Glancy Nicholls to complement the town’s Regency architecture.

This financing was arranged by debt advisory boutique BBS Capital, and marks the third time Octopus Real Estate and Wavensmere have teamed up in recent years to deliver a brownfield regeneration.

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"At Octopus Real Estate, we always want to work with best-in-class developers who are aligned with our vision and values,” said Sam Wisker, investment manager (commercial and development debt) at Octopus Real Estate.

“Wavensmere has a strong reputation for delivering high-quality, sustainable homes. We are thrilled to be once again working with this dynamic team, and look forward to seeing the positive impact the Arkle Court regeneration project will have on the local area."

James Dickens, managing director of Wavensmere Homes, added: “While we are already on site, this funding facility enables us to confirm delivery timescales.

“The quality of our Arkle Court development will showcase what can be achieved when the Borough Council and developers work together to unlock complex regeneration schemes for the benefit of Cheltenham.

“Our team will continue to work with the Council and other stakeholders as the construction programme progresses.”