Enquire nowLogin
27 October 2017
Octopus Property launches first commercial term loan product
• Targeting £16bn annual market traditionally dominated by UK high street banks and building societies
• Bolsters Lifecycle Lending proposition
Read more
Octopus Property, the specialist finance provider, today announces the launch of its new commercial term product as it looks to take market share from UK high street banks and building societies.

This latest product offering adds to the growing range of competitive and flexible products the business now offers borrowers as part of its Lifecycle Lending proposition. This has seen the company rapidly expand its product range to enable borrowers to switch products easily during the course of their real estate investment, and development strategies, without experiencing additional fees.

Octopus Property has created a straightforward term product for commercial investment properties, which is solely funded by Octopus Choice, the peer to peer platform launched by Octopus earlier this year. This product will dovetail with the existing bridging product, which is suitable for short-term borrowing requirements or where properties have little or no rental income. In the three years to September 2017, Octopus Property’s commercial team has successfully deployed over £423 million into bridging finance.

Key features of the new product include:

• 5.5% per annum fixed
• Interest Only. No amortisation
• Loans from £0.5m-£2.0 million
• 2-5 year terms
• A maximum loan-to-value of 65%
• No Early Repayment Charges after 24 months
• An interest cover ratio (ICR) of 1.0x based on net rental income

Ludo Mackenzie, Head of Commercial at Octopus Property, added: “According to the recent De Montfort Report, in the first half of 2017 over £8.1bn worth of senior term lending in the UK was undertaken by UK banks and building societies, which is by far the biggest segment of the market. With this new product we are confident of appealing to both new and existing borrowers, combining the speed and certainty of a specialist lender with the lower cost of debt traditionally
associated with high street lenders.”

Nick Westoby, fund manager at Octopus Property, added: “We’ve used our market knowledge and expertise to develop a product that can help borrowers achieve their goals. We always work closely with our network of intermediaries to fully understand what borrowers want and how we can help them. This product allows a borrower to raise higher levels of debt and keep more of the rental income, while also enabling them to finance assets with shorter leases, or take an interest payment holiday to cover lease expiries and break options.”

Today’s news follows swiftly on the heels of the launch of Octopus Property’s latest institutional commercial debt fund, CREDF II, which announced a first close of £115 million at the beginning of the month. The funds will be deployed primarily into short term acquisition and refinancing opportunities.

Read less
05 October 2017
Octopus Property launches next institutional RE debt fund
Building on a successful track record of raising and deploying institutional capital
Read more

Octopus Property, the specialist UK property lender and part of Octopus Group, today announces a first close of £115 million for its second commercial property debt fund (‘the Fund’), an institutional debt strategy focused on the UK commercial property market.

Octopus Property is one of the UK’s leading non-bank lenders, providing bespoke financing facilities secured on commercial, development and residential property. Since 2009, it has lent in excess of £2.6 billion across c. 2,600 loans.

The launch of its second commercial property debt fund follows the successful deployment of CREDF I, a £130 million fund launched three years ago, and CREDF-S, a £35 million fund raised from existing investors in 2016 due to sustained institutional demand. The two funds have completed more than £420 million of lending, secured against commercial real estate across mainland UK. CREDF I has returned a gross IRR of 12.6% to June 2017. The Fund will provide sufficient funding to complete loans with a combined value in excess of £500 million over the next three years.

Ludo Mackenzie, Head of Commercial Property at Octopus Property and manager of the Commercial Real Estate Debt Funds, said: “Repeat commitments from CREDF I investors, together with new investment, are testament to the continued strength and growth of the business as well as the successful track record of CREDF l and CREDF-S. There remains a real need for commercial property finance in the UK market, and we have built a reputation and track record of delivering bespoke solutions, quickly and efficiently.

“From a borrower’s perspective, we provide loans that are more versatile than traditional bank finance and cheaper than private equity. From an investor’s perspective, CREDF I has been able to deliver returns that are comparable to equity funds.”

Mario Berti, Chief Executive Officer of Octopus Property, added: “The launch of our second commercial property debt fund is an exciting opportunity for our commercial lending team, who have demonstrated their ability to deploy capital across a range of lending opportunities and deliver attractive returns.”

Simba Capital is acting as Placement Agent and Macfarlanes is providing legal support for the Fund.

This press release is issued by Octopus Investments Limited which is authorised and regulated by the Financial Conduct Authority. The information contained within this press release does not constitute an offer or inducement to participate in a collective investment scheme, alternative investment fund or any other financial product and may not be treated as an offer or inducement in any jurisdiction where such an offer or inducement is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. For the purposes of the UK Financial Services and Markets Act 2000 (‘FSMA’), the Fund is an unregulated collective investment scheme which has not been authorised or recognised by the FCA. Unregulated collective investment schemes may only be promoted to persons falling within one or more of the exemptions from the scheme promotion restriction in section 238 FSMA. While this press release is not considered to be a financial promotion, only the following persons should consider the information contained within this press release:

a) investment professionals falling within article 14 of the FSMA (Promotion of Collective Investment Schemes) (Exemptions) Order 2001, as amended (the “CIS Order”), being, in summary, persons with professional experience of participating in unregulated schemes;

b) high net worth entities falling within article 22 of the CIS Order, being, in summary, bodies corporate with called-up share capital or net assets of not less than £5 million, or if the body corporate has more than twenty members or is a subsidiary undertaking of an undertaking with more than twenty members, £500,000; unincorporated associations or partnerships with net assets of not less than £5 million; and trustees of high value trusts; and

c) other persons to whom the may lawfully be promoted in accordance with the CIS Order or the FCA’s Conduct of Business Rules.

No person outside those categories should consider or rely on the information contained within this press release for any purposes whatsoever.

The ability to invest in the Fund is only available to certain persons, being, in summary investment professionals and high net worth entities as described above and certain certified high net worth and sophisticated investors.

The value of investments, and the income from them, may fall or rise. The information in this document should not be construed as offering investment or tax advice.

Read less
12 September 2017
Octopus Property completes £11m of loans with RHL in one month
2 deals agreed with specialist distributor RHL in August totaling £11m. Successful bridging loans completed for mixed-use property and development loan. Demonstrates OP's continued ability to provide dynamic, efficient financing for complex schemes.
Read more

Octopus Property, the specialist finance provider, is pleased to announce that it has completed a £5.76 million bridging loan on a converted Church and nine self-contained residential units.

It represents the second loan completed with RHL in a month, with whom Octopus Property has built a strong working relationship to provide a range of financing products across both the residential and commercial sectors.  

The freehold property comprises a Grade II Listed Victorian church, converted to include 14,000 sq ft of high quality, mixed use commercial space and converted church hall providing nine self-contained one, two, three and four bed apartments.

Many lenders would have found it difficult to lend against a converted church and residential apartments, however Octopus recognised the exceptionally high quality of the conversion and the obvious ability of the developer.

Octopus Property continues to enhance its commercial lending offering available to both new and existing customers. Through its unique Lifecycle Lending proposition, Octopus now provides borrowers with a comprehensive range of financing products.

Ludo Mackenzie, Head of Commercial at Octopus Property, commented:

We are pleased to have completed two large deals with RHL during August, further strengthening our relationship with a leading distributor. As with many of the facilities that we provide, the asset represented a complex loan, which needed to be structured and delivered in a short space of time.

“As we continue to undertake our most significant product revamp focusing on our Lifecycle Lending proposition, this deal represents a prime example of our ability to deliver bespoke yet attractively priced financing to both new and established borrowers.”

Tony Hughes, Director at RHL, added:

We have a long and successful working history with Octopus Property and both the recent deals were fresh examples of their innovative, customer-focused approach. The team at Octopus has grown significantly over the last year to meet the growing market demand for its attractive range of products, but we continue to find that their standards remain of extremely high quality.” 

Read less
07 September 2017
Octopus Property boosts commercial lending team
James Nunn and Nick Westoby appointed Fund Managers. Takes total new hires across the business since start of year to 25. Further supports Lifecycle Lending proposition, with 20 new product launches and record loan book growth in 2017.
Read more

Octopus Property (OP) is delighted to announce the appointments of Nick Westoby and James Nunn to the role of Fund Manager within their commercial team. With a combined 26 years’ experience working in the real estate finance sector, Nick and James will be responsible for supporting the growth of OP’s commercial lending portfolio, managing both institutional and retail capital on behalf of Octopus Group.

Both qualified Chartered Surveyors, Nick joins OP from Hatfield Philips International, where he was Senior VP responsible for managing a £650 million loan book and underwriting £5.5bn of pan-European portfolios. James was previously an Associate at D2 Private, responsible for investment management and business development of a £300m pan-European property investment fund.  

These most recent senior appointments demonstrate OP’s continued growth ambition and support the company’s commitment to the commercial property sector, following the successful deployment of the company’s first institutionally raised Commercial Real Estate Debt Fund (CREDF) over the last three years.

Other significant recent hires to the OP team include Nick McAuliffe as Chief Operating Officer, Holly Harvey as Head of Marketing and Matt Foley as a Credit Manager in the Residential Development team.   

Ludo Mackenzie, Head of Commercial Property at Octopus Property, commented:

“I strongly believe in building a team which has direct experience as investors and developers, rather than pure banking.  We want people who genuinely understand real estate and as a consequence, can make more informed decisions.  In this way, we are a business that can look at every deal on its merits and empathise with our clients.”

Mario Berti, CEO of Octopus Property, added:

This is an exciting time for the company, and with the support of the wider Octopus Group, we look forward to further cementing our position as a market leader in the provision of specialist finance.”

Since launching in February 2009, OP has seen significant headcount growth and achieved impressive loan book growth, completing over £2.6 billion of lending across 2,500 loans. It lends across the commercial, residential and development markets.

Read less
  • 1   
  • 2   
  • 3   
  • 4   
  • 5   
  • 6   
  • 7   
Property finance, the way it should be
Or call us on 0800 294 68500800 294 6850