Octane completes £8.5m developer exit in 20 days

The deal was split across two cross-charged loans, clearing the development finance on both sites and providing a £4m capital raise to aid the developer’s liquidity.

The 70% LTV, 12-month loans, with 1.36% arrangement fees, were priced at 0.79% per month (BBR linked).

Octane’s sales and marketing director, Josh Knight, originated the loans while the firm’s director of structured finance, Alex Tyrwhitt, and head of short-term credit, Rick Hollingsworth, underwrote them.

Also assisting in the deal were Octane’s legal team, Daniel Baker and Seray Kitchingman from Weightmans, and the firm’s valuer Patrick Kearon from Colliers.

Matt Smith, director of credit and risk at Octane, commented: “Particularly over the last two years we have seen an increase in completions in the £5 – 20m range. So, last year, we took the decision to bolster our structured finance team”.

“In Alex Tyrwhitt, Rick Hollingsworth and Jamie Oxley, we have a dedicated team for the underwrite of larger transactions”.

“To complete a facility of this size in just 20 days is testament to the efficacy of the team and how hard they work”.

“A huge thank you must also go to our professional partners and our introducing broker, without whom this completion timeframe would not have been possible.