Octane completes £10.5m facility against student let portfolio

Octane Capital has completed a £10,560,000 bridging loan against 30 student-let apartments in Bath and Oxford.

June 13, 2024

The purpose of the loan was to allow the borrower to purchase the portfolio at a ‘bulk discount’ from the vendor which was undergoing a formal programme of sales of non-core assets.

The facility was at 82.5% of loan to purchase price and was arranged over 12 months at a price of 0.39% per month plus BBR.

Security for the loan is made up of four fully let student blocks of 30 cluster apartments incorporating 151 bedrooms which are 98% let with occupancy of 96-100%, while the exit for the facility will be via one of multiple specialist banks with which indicative terms are already held.

Steve Williams, who was the introducing broker at Redgate Specialist Finance, said: “It’s not often that a transaction of this size and complexity, with a strict time line looming, goes so smoothly and without stress.”

“That is the biggest testament I can pay to the team at Octane Capital, in particular Alex Tyrwhitt and Justin Cooper.”

Alex Tyrwhitt, director of structure finance at Octane, commented: “Complex ownership structure, four separate properties, four separate SPVs, one facility, 82.5% LTPP, £10m plus loan — all delivered ahead of time.

“Such a pleasure to work on this complex deal with so many experienced and professional participants. Thanks for the opportunity Steve at Redgate and pleasure working with you as ever.”

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