A development of 70 one, two and three bed residential units plus ground floor commercial space in Brighton is to go ahead after Octopus Property agreed to provide an 18 month, senior debt facility of over £20m to Ktesius Projects.
The scheme, approved in January 2017, which has a GDV of over £35m, is located in the Valley Gardens Conservation Area, on the former Brighton Astoria Cinema site and is just a short walk from the historic Brighton Palace Pier.
Emma Burke, Head of Development Origination at Octopus Property, said: “This significant loan, provided to an experienced residential developer, fits perfectly with our strategy of quickly taking on complex situations and providing attractively priced products. Our talented team was able to structure the deal to suit Ktesius Projects’ requirements, providing funding on a deferred mezzanine position and a VAT bridge.
“Whilst political and economic uncertainty affects the wider real estate market, debt financing remains relatively cheap. Coupled with the favourable demand supply dynamics supporting residential investment and development, we are confident that the increasing demand for specialist lenders that are able to deliver a market-leading product, with first class customer service, leaves us extremely well-placed to continue growing the loan book.”
Construction has already started on the seven storey building, which will be U-shaped in design and incorporates a landscaped central courtyard. The scheme will offer residents access to a communal gym, TV room, locker storage, community room as well as 72 bicycle racks.
Ken MacRae, CEO of Ktesius Projects, said: “This is one of the most exciting projects we have undertaken to date, taking an historic building and developing it into much-needed residential units in one of the most desirable parts of Brighton.
“Finding a lender who fully understood our deal requirements from the outset was vital, and working with Octopus has been a truly collaborative process. We are committed to growing our residential portfolio across the South East into 2018 and look forward to the opportunity to work with Octopus again.”
Unit completion is expected in late 2019.
