loan to value
We provided a 12-month, £16 million senior-financing facility to Ankor Property, a repeat client of Octopus. The loan was for the development of two Grade-A London purpose-built student accommodation (PBSA) schemes. These would be based in in Ealing and Greenwich, available to students for the start of the 2017/18 academic year.
Flexibility and a deep understanding of the PBSA asset class were key to us facilitating this deal. We were able to structure a very competitive package. This included releasing more debt on day one by incorporating a serviced period once the assets’ rental income was stabilised.
In Ealing, the scheme comprises 124 bed spaces, arranged over four floors, in a combination of self-contained studio and twin bedrooms. It is just a short walk from the University of West London and well served by Ealing’s excellent tube and train links. The property has been designed to a high specification and will be operated by Homes for Students, one of the UK’s most established operators.
The Greenwich scheme comprises 33 self-contained and fully-furnished en-suite studio apartments. Completed to a high specification, each includes an integrated kitchen, high-speed internet and wall-mounted flat-screen smart televisions. The property benefits from its close proximity to Greenwich Docklands Light Railway and North Greenwich Tube. These provide fast access to several central London university campuses.
“By viewing the two assets as a collective facility, we provided a simple yet certain solution, helping to grow our client’s business and presence in the student sector.”
Gavin Eustace, Head of Residential Development, Octopus Real Estate