The specialist lender provided Ktesius Projects with an 18-month senior debt facility worth over £20m – a record development finance loan for Octopus Property – for the project at the former Brighton Astoria cinema.
The scheme (pictured above) – which was approved in January – has a gross development value of over £35m and will contain a mix of one-, two- and three-bed units as well as ground-floor commercial space.
Construction has commenced on the seven-storey building, which is expected to be completed in late 2019.
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“This significant loan – provided to an experienced residential developer – fits perfectly with our strategy of quickly taking on complex situations and providing attractively priced products,” said Emma Burke, head of development origination at Octopus Property.
“Our talented team was able to structure the deal to suit Ktesius Projects’ requirements, providing funding on a deferred mezzanine position and a VAT bridge.”
Ken MacRae, CEO of Ktesius Projects, added: “This is one of the most exciting projects we have undertaken to date, taking an historic building and developing it into much-needed residential units in one of the most desirable parts of Brighton.
“Finding a lender who fully understood our deal requirements from the outset was vital, and working with Octopus has been a truly collaborative process.
“We are committed to growing our residential portfolio across the South East into 2018 and look forward to the opportunity to work with Octopus again.”
Arc & Co acted as the broker for the deal.