Octopus Property, the specialist U.K. property lender and part of Octopus Group, has held a £115 million ($152 million) first close for its Commercial Real Estate Debt Fund II (CREDF II), an institutional debt strategy focused on the U.K. commercial property market.
The launch of CREDF II follows the successful deployment of CREDF I, a £130 million ($173 million) fund launched three years ago, and CREDF-S, a £35 million ($46 million) fund raised from existing investors in 2016 due to sustained institutional demand. The two funds have completed over £420 million ($558 million) of lending, secured against commercial real estate across mainland United Kingdom. CREDF I has returned a gross IRR of 12.6 percent to June 2017.
CREDF II is targeting £200 million ($265 million) at final close, which will provide sufficient funding to complete loans with a combined value in excess of £500 ($664 million) over the next three years.
“Repeat commitments from CREDF I
