Octopus Property, part of the Octopus Group, has agreed to provide Strawberry Star with a £10 million, 12 month loan, to support the acquisition of 110,000 sq ft of retail space in Harlow, Essex.

Strawberry Star has secured planning consent to demolish the property and build 447 residential units, a mixture of for sale and Private Rented Sector (PRS) on a site which is part of the Harvey Shopping Centre, Harlow’s premier retail destination, the property, comprising three buildings, is currently let to 39 commercial tenants, with the majority let on short leases.

Ludo Mackenzie, Head of Commercial Property at Octopus Property, said: “It is a pleasure to work with repeat borrowers, particularly those like Strawberry Star with a reputation and track record of success. We are seeing an increasing number of opportunities to finance schemes where borrowers have recognised the potential to extract value from change of use, whilst at the same time playing a key role in the placemaking process that is underway in many urban centres across the UK.”

Alongside the residential units, comprising a mix of studio, one and two bed homes, the scheme will deliver 43,200 sq ft of ground floor retail, across four separate blocks.
Santhosh Gowda, Chairman, Strawberry Star Group, added: “We are securing opportunities for our volume housing vision aimed at offering London lifestyle homes in the commuter belt towns. Harlow, as one of the leading regional housing markets, is an important addition to our development pipeline.”

This will be the eighth time that Octopus Property has funded Strawberry Star, other deals have supported commercial acquisitions, refinancings and a VAT loan.