Octopus Real Estate has agreed to provide €11.4m (£9.7m) of development finance to projects in Uxbridge and Bristol. The Uxbridge project involves a development finance loan of €6.8m (£5.8m) to experienced developer Kings Oak Brunel LLP, which will facilitate the conversion of an office to a residential site. This is the second time that Octopus Real Estate has lent to the developer. The building will be converted into 28 apartments including 16 one-bedroom and 12 two-bedroom apartments. Located just 1.2 miles from the town centre and 1.1 miles to Uxbridge underground station the future tenants will benefit from good commuter links into central London with a travel time of just over 40 minutes. The development site is also a 10-minute bus ride to West Drayton railway station, part of the Elizabeth Line, due to providing access to Central London in under half an hour.
The scheme in Bristol, a development finance loan of €4.5 (£3.9m), to an experienced individual developer, will facilitate the site purchase and the ground-up development of 19 apartments including eight one-bedroom, nine two-bedroom and two three-bedroom apartments. The development will also include two commercial units. Located just 1.2 miles from Bristol Temple Meads train station, in the Spike Island area, the property has views of the River Avon and the location will provide a good rental yield.
Gavin Eustace, Head of Residential Development at Octopus Real Estate, said: “We continue to lend to developers in both London and the regions. London remains an attractive investment opportunity for developments in the right location, as demand is still high, and developers in the regions can benefit from a higher rental yield in some areas. We always enjoy working with experienced developers helping their development projects become a reality. Where there continues to be demand for development finance from our clients, we will continue to support and lend.”