Octopus Property and Oblix Capital complete record-sized finance deals
Octopus Property and Oblix Capital have completed record student accommodation deals
Octopus Property has completed a £36m deal with EREC Estates for a purpose built student accommodation scheme in Coventry. This is the largest ever development plan for EREC Estates, a developer of student accommodation.
Earlier, Octopus had completed two development loans with EREC which included projects in Coventry and Leicester.
The latest development will comprise two buildings totaling 502 bedrooms, and is located a short walk from the main university campus.
Gavin Eustace, head of residential development at Octopus Property, noted that the student accommodation sector remains one of the most attractive asset classes to investors.
He said that starting 2019 with their largest ever development facility is a significant milestone for the team and demonstrates their evolving maturity and ability to compete with major institutional lenders. Eustace added that growing the development loan book is a key priority moving forward and working alongside their key partners should see them doing similar sized deals more regularly.
In another deal in the student accommodation sector, Oblix has completed on a £4.06m commercial bridge deal in Edinburgh, it’s largest loan north of the border.
The six-month loan was to enable the borrower to purchase a site in the city which they will now look to transform into contemporary student accommodation.
Sales director at Oblix, Andy Reid said the market in Scotland has seen an upward trajectory over the last couple of years, despite the issues hitting the wider UK market.
Reid added that this is somewhat of a hallmark completion for Oblix as it marks their largest Scottish deal to date.
He said that they have been working hard to ensure that their products are in-line with clients’ needs and they are excited that the Oblix brand and presence in the Scottish market is gaining momentum, given the demand they are seeing in this region.