The specialist property lender delivered the funding over a 12-month term through its commercial real estate debt fund II.

Planning consent is currently in place for a mixed-use 395-unit PRS scheme on the 3.6-acre site, which will include 38 affordable units.

The city centre project — which is currently a Mr Tyre storage facility — will also contain 32,600 sq ft of ground-floor retail and leisure space.

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Ludo Mackenzie, head of commercial property at Octopus Property (pictured above), said: “We are pleased to be supporting an established local developer with the proposed development of this industrial site into a major PRS scheme in what is an historical and sought-after part of Birmingham. 

“The scheme’s viability is well supported by attractive supply and demand dynamics, as well as the wider regeneration activity in the jewellery quarter.” 

Ludo stated that Octopus was seeing an increasing appetite from borrowers for fast and flexible finance in the regions.

Marcus Hawley, managing director at Blackswan Developments, added: “We are delighted to have completed the purchase of the Hockley Mills site, funded by our partners at Octopus Property. 

“This is another important step in developing one of our key sites in the heart of the jewellery quarter.”

Adam Buchler at BBS Capital — which acted as debt adviser to the borrower — commented: “Our deep knowledge of the Birmingham market enabled us to present the scheme effectively to prospective lenders and secure the leverage and flexibility that our client required.”