Octane Capital has successfully closed an £11 million funding arrangement for the remaining 120 units of a larger development comprising 213 units across Aylesbury and Maidenhead. The borrowers were nearing the end of their existing financing agreements and intended to both rent out and sell some of the remaining units.

Octane Capital provided two flexible 18-month facilities that allowed for both sales and rentals. One loan featured serviced interest, while the other had rolled interest. The variable interest rate was set at 0.36% per month over the Bank of England’s Base Rate (BBR).

Despite the complexity arising from the ownership structures and titles, involving two separate sites and transactions, the refinancing was completed ahead of the expiration of the existing facilities. Westley Richards, director at West Rock Capital, brokered the intricate transactions, while Patrick Kearon, director at Colliers, provided valuation advice. Rob Brooks, partner at Seddons, ensured the timely provision of legal work.

Alex Tyrwhitt, director of structured finance at Octane Capital, expressed satisfaction with the smooth coordination of the transaction and praised the attention to detail and prompt response of West Rock Capital. Westley Richards of West Rock Capital commended Octane Capital’s team for their commitment to understanding the asset and tailoring a loan facility to meet the client’s needs.

Jonathan Samuels, CEO of Octane Capital, highlighted the emerging trend of developers adopting a dual strategy of both letting and selling units as the sales market slows down. He acknowledged that while the initial plan is usually to sell all units, the market reality often makes it sensible to pursue rental opportunities as well.