Chat to a team member

Blog

Plugging the development finance gap

Mark Posniak Mark Posniak
Posted on Sep 14, 2017 | in Blog

Our pipeline is already looking fantastically healthy but it's set to grow even more with the official launch of our development arm last Tuesday. 

Initially, our development proposition will focus on conversions and lighter refurbishments. But our goal is to cater for heavy refurbishment by the end of 2017 and full, ground-up funding by Spring next year.

On the same day last week, we also announced that we have hired Alex Tyrwhitt as Head of Development Lending. Getting someone of Alex's calibre onboard is a fantastic coup for Octane and will hopefully show that we mean business. 

Alex knows the sector inside out and will be instrumental in making us the stand-out lender for development finance. As I’ve said before, we are not here to make up the numbers.

There's certainly a lot of demand right now for this type of finance. While the political and economic climate remain uncertain, one thing remains as constant as ever — the lack of supply in the UK housing market. And it's this that's driving developers to grasp the opportunity and build out new schemes.

And with the high street banks still wary of development lending, there's a significant gap in the market for professional, fast and flexible funding. It’s a gap, you guessed it, that we fully intend to fill.

Towards the end of last week we also announced the completion of a particularly complex loan, for £7.4m. The loan, primarily for the acquisition of a large office in Southend with planning permission for 140 units, involved all manner of moving parts.

Not only were there three corporate borrowers (one BVI-based) with the same UBO, but there were multiple securities, one of which we enhanced with a slither (well, a Ј720,000 slither) of development finance. 

To top it all off, as the main UBO lived in Jakarta, and had previously met his London-based solicitors, we were happy for the client to sign the legal documentation via Skype video conference. How things are changing in the digital age.

Anyway, this loan is a textbook example of the kind of deals we are looking to fund. Anything that makes other lenders head for the hills, you'll find us at the head of the queue. It's about as far from vanilla lending as you can realistically get but right in our sweet spot.

More in this section

Interest rate rise proves demand catalyst, not killer.

Dec 11, 2017 | Blog

Slightly curious house price data emerged from the Halifax at…

Jonathan Samuels
Jonathan
READ MORE

The Octane team is growing fast!

Dec 07, 2017 | Blog

And it bloomin' well needs to given the amount of interest we're…

Mark Posniak
Mark
READ MORE

PRA changes herald major opportunity for specialist lenders

Nov 27, 2017 | Blog

I’m sure some landlords were fearing the worst before last week's…

Jonathan Samuels
Jonathan
READ MORE
Sections
Archive
Twitter
Follow us @octanecapital

1 week, 4 days ago
Stock markets at record levels, but UK house prices fall - business live https://t.co/Ms4Se6JWKV

1 week, 4 days ago
RT @MedianettMartin: Bridging lender @OctaneCapital has named Graham Macaulay as its senior credit manager https://t.co/hFfHkOuxDy

2 weeks, 1 day ago
RT @mposniak: Delighted to present our latest @OctaneCapital #3rdGen #FounderBroker and my first partner post of 2018. Welcome a… https://t.co/hmMjRPPBI5

2 weeks, 1 day ago
RT @mposniak: With Graham’s arrival we have had to take even more space @OctaneCapital towers! The #3rdGen revolution is gather… https://t.co/sP6qptzvFi

1 month, 2 weeks ago
RT @mposniak: I know its late but its never too late to welcome an @OctaneCapital #3rdGen #FounderBroker is it?! Welcome Simon P… https://t.co/EqKg7LTjPR

1 month, 2 weeks ago
RT @mposniak: Latest @OctaneCapital #3rdGen blog... PRA changes herald major opportunity for specialist lenders https://t.co/YvNn9nnYCh