Octopus Capital, a leading UK specialist real estate lender and investor, has agreed a forward-funding deal with Bellway Homes, one of the UK’s largest housebuilders, to support the delivery of 128 affordable homes across three new-build developments in Kent and East Sussex.
The investment has been made through the Octopus Affordable Housing strategy which channels long-term capital to accelerate the delivery of essential new affordable homes across the UK. The investment will go towards building schemes in Iwade (Kent), Hailsham and Bexhill (East Sussex). It represents one of the largest individual, new-build affordable housing deals completed by the fund to date and is the first direct transaction between Octopus Capital and Bellway.
The schemes will deliver 21 homes in Bexhill, 77 in Hailsham and 30 in Sittingbourne. The developments will offer a broad mix of accommodation, ranging from one-bedroom flats to four-bedroom family houses, designed to meet the needs of people at different stages of life. Of the 128 homes, 89 homes be available for rent, 39 for shared ownership.
All homes will be developed by Bellway Homes and transferred on a freehold basis to NewArch Homes, Octopus Capital’s for-profit Registered Provider of Social Housing.
Every home will be energy-efficient, with an EPC B rating or above. Most homes will be fitted with air source heat pumps to lower energy costs for residents and aligning with Octopus Capital’s focus on delivering homes that are sustainable for the long-term.
“This deal marks an important milestone for our affordable housing strategy. Partnering directly with Bellway for the first time allows us to deploy capital at scale, regionally to support the delivery of high-quality affordable homes where they’re needed most.”
Ellie Vlavianou, Investment Director at Octopus Capital
“Working with Octopus Capital on this forward-funding deal enables us to bring forward a substantial number of high-quality affordable homes across Kent and East Sussex. These developments will provide a diverse mix of homes for rent and shared ownership, helping meet local housing need and giving more people access to well-designed, energy-efficient homes in places where demand remains high.”
Dan Brady, Group Affordable Housing Director at Bellway Homes
