Octopus Property

Octopus to provide £12.6m loan to support east London PDR project

Octopus Property has agreed to provide a £12.6m senior loan to fund the acquisition of a part-vacant office building on the Isle of Dogs in east London.

The loan was provided to residential developer London Green and equity partner Orlandis Capital.

The property benefits from permitted development rights (PDR) for conversion into 63 residential units and the developer aims to further enhance the planning.

The facility was provided through Octopus Property’s commercial real estate debt fund (CREDF II).

Repayment will come via a development finance loan, with Octopus Property acting as the lender.

The existing seven-storey building – known as Boatman’s House (pictured above) – provides 48,500 sq ft of office space, with one part currently occupied and the rest of the building vacant.

The conversion of the site will provide a mix of studios, as well as one- and two-bedroom flats.

“Situated in a highly desirable part of east London and working alongside a developer with a track record of successfully delivering high-quality residential schemes across the UK, we are very pleased to be involved in this scheme,” said Ludo Mackenzie, head of commercial at Octopus Property.

“Our ability to provide a range of borrowers with lending products that span the acquisition, development and investment stages of a project continues to differentiate our offering from the peer group and has been a major contributor to what has been a record 2018.

“Despite wider market uncertainty, London continues to be a major focus for residential and commercial real estate strategies and we continue to identify opportunities to provide debt finance for a range of property types and borrowers.”

London Green was supported by debt advisers Mantra Capital.

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