Transforming a business site into a thriving community
£19.5 million development loan
The finance
Through our Greener Homes Alliance initiative, we provided a £19.5 million fixed-rate development facility in conjunction with Homes England. This funding enabled the redevelopment of a former business centre into 63 energy-efficient apartments and 2,200 square metres of commercial space in Blackheath, South East London. The development, led by Vabel, meets the Alliance’s sustainability criteria, with all residential units targeting an EPC A rating.
The Greener Homes Alliance offers interest rate discounts for developments where all homes achieve SAP scores of 85 or higher. The highest discount, at 2%, applies to homes reaching SAP scores of 92 or above (EPC A rating). Developments funded through the initiative also benefit from free expert advice from McBains and Octopus Energy.
The result
The Blackheath development sets a new benchmark for urban sustainability. It will be the first Greener Homes Alliance project to incorporate ground source heat pumps—low-carbon heating systems that extract warmth from the ground through buried pipework, eliminating the need for fossil fuels. Combined with solar photovoltaic (PV) panels, the entire development will be gas-free.
Key sustainability features include:
- Ground source heat pumps, providing renewable heating and hot water
- Solar photovoltaic (PV) panels to generate clean electricity
- High-performance insulation for optimal energy efficiency
- A mix of shared ownership and affordable rent units to support the local community
Located in the London Borough of Lewisham, the development offers excellent connectivity, with Greenwich Park and Blackheath Common within walking distance. It aligns with the area’s broader sustainability and regeneration goals, creating high-quality, energy-efficient homes while enhancing the surrounding community.
“At Octopus Real Estate, we only want to work with developers who deliver high-quality, sustainable homes. Vabel is a renowned developer celebrated for its exceptional reputation in creating design-focused, first-rate properties throughout the capital. We are excited to join forces with the Vabel team and support them as they provide Blackheath with more energy-efficient housing options.”
Sam Wisker, Investment Manager, Octopus Real Estate Development
