Matt Smith

Octane Capital completes £10m bridge in 12 days

Specialist lender Octane Capital has announced the completion of a £10m bridging loan just 12 days after the initial enquiry.

The £10m bridging loan was secured on a £20m asset for a client of First Wealth Management.

The 12-day turnaround included a new valuation and full legal due diligence on the asset and borrower, who urgently needed to raise equity to fund another acquisition.

Part of the loan provided by Octane was to take out another bridging lender, with an additional £4m of equity provided on top.

The security was a £20m loft-style studio development in a former Victorian warehouse in Hackney, which was purchased vacant in 2014.

Over the past three years, the borrower has implemented a highly successful value-add asset management strategy, achieving 100% occupancy and driving excellent rental performance across the estate.

The prized asset is now an established creative hub with an eclectic mix of more than 30 business, ranging from start-ups through to global brands in the creative, media, technology, leisure and event space.

The asset’s diverse and secure income stream offered Octane reassurance that the loan could be serviced.

The borrower plans to exit with a commercial term loan within nine months.

“The security we accepted for a loan of this size would have been an instant red flag for a lot of lenders, but we know the area and its growth potential very well,” said Matt Smith, director of risk at Octane Capital (pictured above).

“Hackney is increasingly seen as ‘the new Hoxton’ and this workspace hub is already an integral part of the east London creative scene.

“Significant development and regeneration continues to improve the area’s evolution and investment credentials and this type of asset is becoming increasingly scarce in London.”

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