Gavin Eustace

Octopus Real Estate to provide £2.56m refinance and development facility



Octopus Real Estate has agreed to provide an SPV owned by a property developer with a £2.56m refinance and development facility for a commercial-to-residential conversion in Manchester.

The 13,436 sq ft site has planning permission for the residential conversion of the top four floors of the building to include a one-bed, nine two-bed and two three-bed apartments.

Charlotte Street (Manchester) Ltd agreed the 18-month loan with Octopus at 60% LTGDV due to the planning uplift.

The site comprises a five-storey Grade II-listed building with vacant warehouse space on the top three floors, while the commercial leases on the first floor have been surrendered as part of the transaction.

Gavin Eustace, head of residential development at Octopus Real Estate (pictured above), said: “As this site involves a commercial and residential development element, we leveraged the experience of our specialist commercial and residential development teams to structure the loan in a way that suited the client’s needs.

“We have identified the core cities of the North as locations with significant growth potential and we are fully committed to supporting developers and property investors in these cities.”

Tom Frank at Ice Cubed Commercial Finance, who acted as the adviser, added: “This project is yet another example of bringing one of many stunning disused buildings in central Manchester back to life. 

“We were delighted to be instructed to facilitate the funding requirements of the project.

“The project was not without its issues, but between ourselves and the dedicated team at Octopus Real Estate, we were able to resolve these and deliver for the client.”


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