The site will be used for the development of 21 residential apartments with an additional circa 4,300 sq ft commercial unit and basement car park.
Construction of the apartments – which will comprise one-, two- and three-bed units – is expected to take 18 months, with Mayfield Property Group as the development manager.
The loan was agreed on a 27-month term and brokered by Daniel O’Neil from SPF Private Clients Limited.
Octopus has reported that this deal highlighted its continued drive to grow its residential development loan book exposure in 2018, having already transacted in excess of £125m in the first five months of the financial year as it targets £300m of residential development financing over the next nine months.
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“This is a well-located site in a sought-after residential area, where we anticipate strong demand for the completed units,” said Gavin Eustace, head of residential development at Octopus Property (pictured above).
“Working alongside a developer who is backed by a construction company with a proven track record and extensive experience in delivering schemes across the capital gives us added confidence.
“A combination of the favourable market conditions underpinning residential development – including a well-publicised shortage of stock and the low interest rate environment – coupled with the strength of our offer, means we are well positioned to continue funding both new and existing borrowers looking for reliable and flexible senior development finance.”