Specialist property lender Octopus Property has agreed to provide Saudi Arabian investor, Snabil Limited, with a £12.7 million senior facility to fund the acquisition of a site in Chiswick, West London, with the subsequent development of 21 residential apartments.
An additional c. 4,300 sq ft commercial unit and basement car park will further increase the desirability of the scheme.
Construction of the apartments, comprising 19 one, two and three bed units, is expected to take 18 months, with Mayfield Property Group as development manager.
The broker on this deal was Daniel O’Neil from SPF Private Clients Limited.
The 27-month loan continues Octopus Property’s drive to grow its residential development loan book exposure in 2018, having transacted in excess of £125m in the first five months of the financial year.
Gavin Eustace (pictured), head of residential development at Octopus Property, said: “This is a well located site in a sought after residential area, where we anticipate strong demand for the completed units. Working alongside a developer who is backed by a construction company with a proven track record and extensive experience in delivering schemes across the capital gives us added confidence. We look forward to working with all parties on future developments.
“A combination of the favorable market conditions underpinning residential development, including a well publicised shortage of stock and the low interest rate environment, coupled with the strength of our offer, means we are well positioned to continue funding both new and existing borrowers looking for reliable and flexible senior development finance.”