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

Mark Posniak

Four years old, flat out and having fun

Feb 24, 2021 | Blog

I can’t believe that this week we celebrated our fourth birthday,…

Mark Posniak
Mark
READ MORE

Specialist lending flies over the cuckoo’s nest

Feb 11, 2021 | Blog

If the closing stages of 2020 were crazy, the start to 2021 has…

Mark Posniak
Mark
READ MORE

Redemptions milestone amid pandemic my proudest moment yet

Jan 15, 2021 | Blog

Over the years the team here at Octane has achieved many great…

Matt Smith
Matt
READ MORE
Sections
Archive
Twitter
Follow us @octanecapital

4 days, 14 hours ago
Thanks Augusta for your kind #TrustPilot review. Octane Capital Ltd #5stars #3rdGen https://t.co/WPh2h8i4k8

5 days, 4 hours ago
Thank you Fieldfisher for a lovely evening. Feels so good being able to get together face to face again over a few… https://t.co/yg727wVpxy

5 days, 6 hours ago
Grief Encounter golf day at the Shire - or as my team renamed it - the underwater golfing challenge!! Despite the… https://t.co/dSeWAY0euE

6 days, 10 hours ago
Service is at the heart of our Octane Capital Ltd #Proposition so it is always pleasing to get a start review! We… https://t.co/e84OUKTIK6

1 week, 2 days ago
Superb effort Graham Macaulay & Liam Lawlor in ensuring Octane Capital Ltd were able to step in and make this deal… https://t.co/KX5MQKpFVX