Chat to a team member

CORONAVIRUS: The health and safety of our customers and partners is our priority UPDATE

Press Releases

Octane provides £7.4m loan for large Southend office conversion with multiple securities and 3 non-standard borrowers

Octane Capital Octane Capital
Posted on Sep 08, 2017 | in Press Releases

  • Loan completes on Skype video conference call to Jakarta between UK solicitor and main UBO signing the legal documentation 

‘Product-less’ lender, Octane Capital, today announced the completion of a £7.4m loan to three non-standard borrowers — one BVI-based company and two UK companies —all with the same UBO (Ultimate Beneficial Owner).

£6.7m of the loan was provided on Day One to enable the borrower to acquire — at 100% of the purchase price — a large office in Southend with planning for 140 units. As part of the loan, two other sites were used as additional security.

One of the securities was an office in East London with planning permission to convert to 24 flats. A buyer had already been found with the completion of the sale dependent on the flats being built out. To enhance its security, Octane provided a £720,000 development loan for the works to be completed.

But as the two existing securities did not give enough equity, a third asset was selected as a make-weight. This was an office in Hastings with full planning permission granted for a number of residential units.

The loan, introduced by Sammy Kalms of Kalms Property Finance, was completed in just over a month, a full week prior to the borrower’s deadline.

As the main UBO lived in Jakarta, and had previously met his London-based solicitors, Octane were happy for the client to sign the legal documentation via Skype video conference.

Sammy Kalms, Director, Kalms Property Finance, commented:

“Octane were integral to the success of what was a very complex loan given the nature of the securities and structures involved. Their common-sense approach, proactive lending mentality and experience meant they were able to manage the process efficiently and within the timeframe required.”

Matt Smith, Director of Risk, Octane Capital, added:

“This is about as far from vanilla lending as you can get, but it’s the kind of large and highly bespoke loan we want to work on at Octane. It involved multiple borrowers, multiple securities and multiple moving parts including a development element and land with planning permission. The teamwork required to structure a transaction of this size and nature was exceptional, with our own Alex Tyrwhitt and Matt Bird operating seamlessly alongside the exceptional Seddons team fronted by Simon Noonoo.”

More in this section

Octane 'committed' to brokers and completes on four loans in 24 hours

Mar 24, 2020 | Press Releases

‘Product-less’ lender, Octane Capital, today announced that it…

Octane Capital
Octane Capital
READ MORE

Ryan Houssart joins the #3rd generation

Feb 25, 2020 | Press Releases

With demand for #3rdGen loans soaring as property market sentiment…

Octane Capital
Octane Capital
READ MORE

Octane Capital revs up refurb range

Feb 19, 2020 | Press Releases

With immediate effect, Octane removes level of works restriction,…

Octane Capital
Octane Capital
READ MORE
Sections
Archive
Twitter
Follow us @octanecapital

7 months, 2 weeks ago
RT @mposniak: @OctaneCapital #3rdGen CEO Jonathan Samuels speaking style #TSLE2020about the risks of Dual Rep - especially for Co… https://t.co/iicz42Yboh

7 months, 2 weeks ago
RT @mposniak: So never posted anything yesterday as I was travelling (a day late due to Storm Ciara I might add!!) Delighted to… https://t.co/nNP977c8IK

7 months, 2 weeks ago
RT @mposniak: Another completion this time to make up for the lost day yesterday... Lovely £1.25m @OctaneCapital #3rdGen… https://t.co/r3ESjSiysv

7 months, 2 weeks ago
RT @mposniak: Last one to talk about today but its a special one.... Delighted to complete a lovely @OctaneCapital #3rdGen… https://t.co/LQEJw9uBUw

7 months, 2 weeks ago
RT @mposniak: Qualification for the 3rd Annual #OctaneCapitalCup in now open!!! Contact your BDM for more info on how to qualify… https://t.co/BmyjR2qLGF

7 months, 2 weeks ago
RT @mposniak: What better way to mark 3 years at @OctaneCapital than with a lovely £375k #3rdGen #BuyToLet completion secured on… https://t.co/vs2YNHo2k7