Working in partnership with Fox Davidson — which brokered the deal — the loan enabled the borrower extra time to sell the apartments.
The loan was provided on Octopus Property’s development exit product, which repaid senior debt with BLG and mezzanine finance with Property Box.
The blended rate of the lenders was 11% and Octopus Property refinanced at 7.49%, providing the borrower with a more cost-effective option.
“With the current market for residential sales slowing down due to Brexit uncertainties, we have found that development exit finance products are coming into their own,” said Wesley Davidson, director at Fox Davidson.
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“The product allowed the developer to save money on interest rates, extend the sales period time and raise funds so that they could move on to their next development.
“Working with Octopus Property is always a pleasure, we have a very good BDM in Michelle and the support team [has] a can-do attitude.”
D’mitri Zaprzala, head of sales at Octopus Property, added: “Working with Fox Davidson was extremely easy and we’re delighted to have them as an ongoing partner.
“Development exit is a great way for borrowers to get the breathing space they need, and at Octopus Property we can fund development exit finance up to 70% of the GDV once a development has reached practical completion.”