Octopus Property has partnered with Cogress to strengthen equity partnership with a second financing settlement.
The specialist finance provider announced that it has provided a 22-month, £5.26m senior debt facility for the development of 22 one, two and three bedroom apartments and two additional ground floor commercial units in Norbury, South London.
Cogress, a private equity property firm, has provided an additional £1.9m of equity, bringing the company’s total equity raise to over £130m since launching in 2014.
Emma Burke, head of development origination at Octopus Property, said: “Having recently expanded our development finance product range, we continue to identify and support well located residential schemes in London, partnering with clients who require both flexible and efficient funding solutions.”
She added: “As appetite from borrowers for a combination of debt and equity financing increases, we’re pleased to have identified a trusted partner in Cogress and we look forward to future opportunities to work together.”
Work on the development is expected to commence in 2017, with the building priced in the £272,000 - £465,000 range. Located on 1516 London Road, it will deliver 22 apartments and a further 1,971 square metre of commercial space.
With a total gross development value (GDV) of £8.8m, the Zone 3 site is a short distance from the attractive outdoor spaces of Streatham Common and Norbury Park, and is a two-minute walk from Norbury train station, offering quick access to London Bridge.
“We’re delighted to be working with the ambitious and experienced Octopus Property on the refinancing process to provide financial solutions for this development,” CEO and co-founder of Cogress UK, Tal Orly, commented. “We’re excited about growing our relationship with Octopus to bring our network of qualified investors the best investment opportunities across London and the UK.”
The scheme represents the second financing arrangement involving both Cogress and Octopus Property.