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Octopus Property, the specialist finance provider, is pleased to announce that it has provided a 22-month, £5.26m senior debt facility for the development of 22 one, two & three bed apartments and two additional ground floor commercial units in Norbury, South London. Cogress, the private equity firm for property, has provided an additional £1.9m of equity, bringing the total deal size to £7.45m.
- Octopus and Cogress strengthen debt/equity partnership with second financing arrangement
- Octopus Property has lent £5.26m of equity to the project, which is part of a record £250m of development finance in 2017
- Cogress, the private equity firm for property, has provided a further £1.9m of equity, bringing the company’s total equity raise to over £130m since launching in 2014
Work on the development is expected to commence in 2017. Located on 1516 London Road, it will deliver 22 apartments, expected to be priced in the £272,000 – £465,000 range, and a further 1,971 sqm of commercial space. The Zone 3 site, with a total GDV of £8.8m, is a short distance from the attractive outdoor spaces of Norbury Park and Streatham Common and is a two-minute walk from Norbury train station, which offers quick access to London Bridge.
The scheme represents the second financing arrangement involving both Cogress & Octopus Property.
Emma Burke, Head of Development Origination at Octopus Property, said: “Having recently expanded our development finance product range, we continue to identify and support well located residential schemes in London, partnering with clients who require both flexible and efficient funding solutions.
“As appetite from borrowers for a combination of debt and equity financing increases, we’re pleased to have identified a trusted partner in Cogress and we look forward to future opportunities to work together.”
Tal Orly, CEO and co-founder of Cogress UK, said: “We’re delighted to be working with the ambitious and experienced Octopus Property on the refinancing process to provide financial solutions for this development.
“We’re excited about growing our relationship with Octopus to bring our network of qualified investors the best investment opportunities across London and the UK.”
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