Octopus Property’s loan was a £36m deal with EREC Estates, a developer of student accommodation, its largest ever development loan.
The funding will go towards a purpose built student accommodation scheme in Coventry. This is the third time Octopus has worked with EREC, having completed previous development loans for 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 added: “Starting 2019 with our largest ever development facility is a significant milestone for the team and demonstrates our evolving maturity and ability to compete with major institutional lenders.
“Growing the development loan book is a key priority moving forward and working alongside our key partners should see us doing similar sized deals more regularly.”
Meanwhile 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.
Andy Reid, sales director at Oblix, 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: “This is somewhat of a hallmark completion for Oblix as it marks our largest Scottish deal to date.
“We have been working hard to ensure that our products are in-line with our clients’ needs and we are excited that the Oblix brand and presence in the Scottish market is gaining momentum, given the demand we are seeing in this region.”