Steve Eades of REF Capital (REFCap) had also provided the borrower with a second charge mezzanine strip before introducing the deal to Octopus Property. 

The broker knew the borrower only had days to complete, but also knew the asset, the overseas borrower and the debt structure presented the kind of complex challenge Octopus Property specialises in. 

The loan was for a prominent commercial site in Greater London which – with the benefit of planning consent for redevelopment – had a GDV of £13.5m and was occupied by a number of sitting tenants, many of whom required compensation before vacant possession could be achieved.

Octopus Property was able to structure its facility in a way which increased the borrower’s net loan, lowered the rate and provided them with certainty that the acquisition bridge would lead straight into a development facility without fee duplication and further valuation costs.

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D’mitri Zaprzala, head of sales at Octopus Property (pictured above), said it knew how important it was to put certainty and good customer service at the forefront of its proposition. 

“There’s nothing worse than being let down by a lender, so when we issue terms, we do so knowing that we will deliver exactly what we promise, no matter what the challenges or the time constraints. 

“We’ve developed exceptionally strong relationships with advisers like REFCap and take great pride in helping them deliver for their clients – without fail. 

“We’ve actively enhanced our product offering over the last six months to become the foremost ‘Lifecycle-Lender’ in the market and this is a prime example of an experienced lender being able to support both the acquisition and development of a great asset, introduced by a great adviser.”

Steve said this had been the biggest lending challenge it had presented to Octopus Property in all the years he had been working with the lender.

“The borrower structure alone would be too complex for most lenders and when you add in the asset complexities, our second charge mezzanine loan and the time constraints, we knew that this was a big ask. 

“As always, the service was first class, the urgency was understood immediately and the complexities of the deal were simply taken in their stride.”

Steve added that there was no room for mistakes, which was why he went with Octopus Property.

“This is the second time in recent months that we’ve successfully provided an in-house mezzanine facility behind Octopus Property’s first charge and demand for the combined offering is proving to be very strong. 

“Having the ability to transfer from a commercial bridge on to a full development facility with no hassle is also a massive benefit to our client. 

“Working with a lender who puts the borrower first, genuinely understands real estate and always delivers on its promises is invaluable. 

“We’re already on to our next deals with Octopus which really says it all.”