Specialist property lender Octopus Property’s drawn loan book has exceeded £1bn.
The lender said it has had a bumper start to the year, amounting to more than £150m in financing.
Octopus has sought to diversify its loan book from solely short-term residential lending, putting greater focus on alternative assets and commercial products. Some 48% of the drawn loan book sits in residential, with 21% in residential development and 31% commercial.
It has more than £1.25bn in its loan book including committed capital, with an even split across residential, residential development and commercial lending.
This includes a £36m student accommodation development loan to EREC Estates for the 502-bed student accommodation at Coventry Union Parkside, and £31m in refinancing on a £210m mixed-use development in south-west London.
Mario Berti, chief executive of Octopus Property, said: “Despite the broader macro uncertainty, this success has been based on a combination of the inability and unwillingness of bank lenders to evolve, the favourable underlying drivers supporting UK real estate investment and our ability to stay ahead with flexible and comprehensive products.
Berti said Octopus is expecting to lend £850m in 2018/19, up from £800m the previous year. He pointed to “a range of residential, development and commercial loans across both mainstream and alternative sectors”.
He added: “The UK is still a fantastic place to do businesses, I don’t think that that is going to change. We can’t ignore that we are right in the middle of a distracting Brexit process, which doesn’t appear to be about to resolve itself.”
Berti said Octopus has de-risked through its diverse funding streams, and its broader sector and geographical investments, and pointed to future growth, particularly in the regions.
Octopus has lent more than £3.6bn since 2009, across 3,100 loans. It specialises in funding housebuilders, SMEs, local authorities, buy-to-let landlords and property professionals, funding borrowers from acquisition through to exit with a range of specialist loans including bridging, refurbishment and longer-term financing.
It is backed by its £250m institutional fund (CREDF II), Octopus Choice a peer-to-peer lender, where Octopus takes the first charge on all loans, alongside inheritance tax backing from Octopus Group, which has £8.3bn in assets under management.
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