Octopus Real Estate has partnered with Sirius Property Finance to provide a £69m loan on a green development of almost 300 new homes in a key regeneration site in Poole, Dorset.
The loan will facilitate the new build construction of 291 one-, two- and three-bedroom apartments split across five adjacent blocks. The development will also house almost 8,000 sq.ft. of commercial space, associated car parking and bike spaces, and a communal landscaped courtyard. The site, at West Quay Marina, is one of the most visually prominent development sites in Poole and has been earmarked for regeneration for a number of years. It currently houses a pay and display surface car park and a vacant two storey commercial building. In addition to the communal courtyard, residents will also benefit from a cocktail bar, a fine dining restaurant, roof terraces and communal lounges.
The developer – London Land Group – is a residential-led mixed-use real estate development company focused on value-add development, urban regeneration and refurbishment projects. With a key focus on innovation and sustainability, it is targeting an Energy Performance Certificate (EPC) Rating of A for this build. London Land will be adopting Modern Methods of Construction (MMC) for the scheme; a process that focuses on off-site construction techniques – such as mass production and factory assembly – as alternatives to traditional building.
This also means less waste is created through the construction process, and there is a lower impact on the local community in terms of time on site, dust and delivery movements. The superstructure of this development will be an offsite precast concrete system, with significant thermal and acoustic performance achieving an EPC Rating of A.
Andy Scott, Head of Residential Development, Octopus Real Estate, commented: “Within the property industry we have a duty to work together to develop more energy-efficient housing and to deploy innovative approaches to housebuilding. This site in Poole is a great example of our wider mission at Octopus to reimagine real estate investment by investing in assets that will deliver real impact to people and the planet. The completed apartments are designed to be EPC Rated A, fitting perfectly into our strategy of supporting the building of more sustainable homes. The team at London Land have been a pleasure to work with, and it was clear from the off that their objectives are aligned with ours. The development is well designed, and the use of MMC will have a direct positive impact on the sustainability and carbon content of the project, and we will be looking to work with more and more developers who implement these methods in the future.”
Mario Luca Balducci, Co- Founder and Chief Executive Officer of London Land Group, said: “At London Land we are driven by a vision to create the best possible lifestyle experience for our residents with a strong sense of community through an innovative, reliable and sustainable developments which includes delivering improved energy efficiency. We’re delighted that Octopus has the funding that enables us to finance a development that has been carefully designed to reduce energy demand, and to provide wider benefits to the local community by forming part of a wider, long-awaited regeneration project. Octopus was the natural choice for us thanks to its B Corp status and strong focus on sustainability and social impact.”
Sirius Property Finance handled the deal, which was its largest-ever case.
Devraj Ray, Senior Associate at Sirius Property Finance, who structed the loan, said: “The journey has been intense but ultimately so rewarding, as we have invested a huge amount of hard work to structure so many different elements of this deal, which has come together for this fantastic result. We now wait to see the amazing 291-unit seafront development in Poole rise from the ground and take shape.”
Scott concluded: “It’s always a great achievement to complete a loan like this where we have all worked together towards a result that works for all parties and that we can all be proud of. The expertise, diligence and determination of the team at Sirius enabled us to structure a great solution, and we look forward to working with them again in the future.”
