Octopus Capital complete £19m loan within five days for retirement living client of CBRE

Octopus Capital has completed a £19 million loan secured on a site with planning consent for an 88-unit retirement living scheme in Kew, London, within just five days.

The vacant site, a former Thames Water treatment plant, was previously used to service the famous Mortlake Brewery. The 12-month loan has refinanced the borrower’s previous debt and released additional equity for ongoing project costs. The site occupies a prime London location on the shores of the River Thames and within close proximity of the Royal Botanic Gardens.

Octopus Capital has consistently supported the commercial real estate sector throughout the Covid-19 pandemic. This is the twelfth loan of more than £10 million completed by Octopus Capital since March 2020, with £350 million of short-term lending having been completed by Octopus Capital’s commercial team during this period. 

CBRE Debt & Structured Finance advised the borrower and introduced the urgent funding requirement, while Damian Keeling of Savills undertook the urgent asset valuation.

Dominic Gibson, Investment Director, Octopus Capital, commented: “This five-day completion time shows what sets us apart as a specialist lender, complementing our expertise as an equity investor in the retirement asset class. The loan highlights our desire and ability to fund high quality assets and borrowers, supporting sub-sectors that are underpinned by long-term demand from end users. We believe that there is significant opportunity for investors, developers, and operators to reduce the current undersupply of high-quality retirement living stock in the UK, and we look forward to continuing our support of the retirement sector.”

Chris Gow, Executive Director, Debt & Structured Finance, CBRE comments: “An ageing population, and a supply and demand imbalance in the UK has made the retirement living sector a compelling proposition for investors and lenders alike. Octopus’ first-hand knowledge of the retirement living, and care home sectors provided significant comfort that the borrower’s urgent funding requirement could be met. We were hugely impressed with the speed at which Octopus delivered the loan and are delighted to have completed another transaction in this buoyant sector.”

Octopus Capital recently released a report on the opportunities within the retirement living sector in a post-pandemic world. To read the report, click below.