The deal is secured against a 15-unit block of flats in South West London for a client of broker firm Alpe Capital.
Under the terms, the developer has 18 months to sell the units.
Octane said the development funder needed to be urgently repaid after the developer had been delayed in starting works by more than a year.
Alex Tyrwhitt, head of structured finance at Octane Capital, said: “To get a loan of this size over the line during lockdown really does drive home the adaptability and resilience of the specialist lending sector.
“The legal team at Weightmans rose to the challenge as they always do, the valuation was completed by Samantha McDermott at Savills with her usual efficiency and diligence, while Peter Blagden at Alpe Capital was helpful throughout and ensured we had all the information we needed before we even asked for it.
“We look forward to doing plenty more deals with Peter in the future.”
Peter Blagden, director at Alpe Capital, added: “These are challenging times for clients looking to refinance residential and commercial loans, and with many financial institutions looking to only cater to existing clients it’s refreshing to see that Octane were one of very few lenders still able to commit capital to new loans.
“We worked tirelessly with Octane and the client’s team to manage this process quickly and effectively and appreciate all the hard work that has gone into this refinancing from both sides.”