Octopus Real Estate, part of Octopus Investments and a leading UK specialist real estate investor and lender, has provided a commercial loan to complete the purchase of a site located in Elephant and Castle, Central London. The site contains detailed planning consent for the development of a 244-bed student accommodation scheme.
The loan has been provided to Alumrose, a joint venture between Melrose Capital and Alumno Group, a specialist provider of high-quality and modern student accommodation. The borrower intends to develop 206 purpose-built studio rooms and 38 two-bedroom apartments, all benefiting from ensuite bathrooms. Permission has also been granted for 1,500 sqft of retail space on the ground floor, providing amenities for local residents.
Demand for student housing continues to outstrip supply, particularly in London. Located in a major Zone 1 transport hub, residents will be within 20 minutes journey of seven London Universities.
James Nunn, Octopus Real Estate, said:
“We’re delighted to have provided the funding required to purchase this site. We specialise in finance for transitional assets: as a non-bank lender we can tailor each loan to the requirements of the borrower. At Octopus Real Estate we’re committed to funding the delivery of quality accommodation, and we’re pleased to play a role in increasing the supply of student accommodation in the capital.”
David Campbell, Alumno, said:
“Site origination is a key driver in our development strategy, and we are very pleased to have worked with a lender who shares our commitment to placemaking and making a positive impact on the local community. We are extremely excited about this project due to its zone 1 location and close proximity to various University campuses. We are grateful to Octopus Real Estate for helping us progress and develop high quality purpose-built accommodation for hundreds of students, at a time when securing living space in the capital is harder than ever. We would also like to thank our JV partner Melrose Capital for their continued support and advice.”
