Octane delivers £4.4m finish and exit for luxury Devon apartment scheme

Octane has completed a £4.36m developer exit facility to support the completion and sale of a 14-unit apartment development in Paignton, Devon.

The loan refinances an existing development facility and funds the final stages of construction at Keysfield Road, a part-complete scheme comprising two- and three-bedroom apartments arranged over four floors.

The building is already wind and watertight, with the majority of units completed.

Structured as a 12-month finish and exit facility, the loan comprises a day-one advance of approximately £4m, alongside a £360,000 refurbishment tranche to fund the remaining cost to complete.

The outstanding works consist of non-structural fit-out and external works and are expected to be completed within eight to 12 weeks.

The facility was structured at 75% LTV against the property's day-one value, assessed on a GDV less cost-to-complete basis rather than a residual valuation.

This enabled the borrower to refinance its existing lender while retaining sufficient capital to complete the scheme and progress unit sales.

The development, which is being marketed by Connells, has already secured five reservations with a combined value of £2.06m, with four units achieving offers at or above asking price.

The facility is structured to amortise as units are sold, while also allowing surplus sale proceeds to be returned to the borrower.

The transaction was completed for an established local development company, whose director has successfully delivered residential and commercial schemes across Torbay and Plymouth.

The deal was introduced by Dan Place, BDM at Balance for Business Ltd, led by Francesca Woodhouse, senior BDM and underwritten by Rick Hollingsworth, head of short-term credit and Nicky Pack, senior credit manager at Octane.

Francesca commented: “What made this deal work was our flexibility and willingness to understand the transaction in detail.

“We took the time to understand the development, works completed and sales secured, and structured the facility around the project’s specific needs.

“Working closely with the Balance for Business team, who shared our commitment to finding the right solution, made the process efficient and collaborative, ultimately delivering a successful outcome for all parties.”

Dan added: ‘‘This transaction is a great reflection of our team’s expertise, commitment, and tenacity.

“Octane were excellent to deal with from start to finish.

“Throughout the process, they remained focused on the client and played a key role in getting the deal successfully over the line.’’