Octopus provides £19m loan within five days for retirement living scheme

Octopus Real Estate has completed a £19m loan secured on a site with planning consent for an 88-unit retirement living scheme in Kew, London, within five days.

The client required the funds — agreed on a 12-month term — to refinance a previous debt and release additional equity for ongoing project costs.

The vacant site, a former Thames Water treatment plant, is located close to the Royal Botanic Gardens and was previously used to service the Mortlake Brewery.

CBRE’s debt and structured finance division  advised the borrower and introduced the funding requirement, while Damian Keeling, director at Savills  undertook the asset valuation.

Dominic Gibson, investment director at Octopus Real Estate, said: “This five-day completion time shows what sets us apart as a specialist lender, complementing our expertise as an equity investor in the retirement asset class. 

“The loan highlights our desire and ability to fund high quality assets and borrowers, supporting sub-sectors that are underpinned by long-term demand from end users. 

“We believe that there is significant opportunity for investors, developers and operators to reduce the current undersupply of high quality retirement living stock in the UK, and we look forward to continuing our support of the retirement sector.” 

Chris Gow, executive director for debt and structured finance at CBRE, commented: “An ageing population and a supply and demand imbalance in the UK has made the retirement living sector a compelling proposition for investors and lenders alike. 

“Octopus’ first-hand knowledge of the retirement living and care home sectors provided significant comfort that the borrower’s urgent funding requirement could be met. 

“We were hugely impressed with the speed at which Octopus delivered the loan and are delighted to have completed another transaction in this buoyant sector.”

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