London-based specialist property lender Octopus Property, part of the Octopus Group, has launched a development-light product, to meet the increasing demand from SMEs and smaller developers requiring finance for residential schemes that sit outside the traditional refurbishment or development lending parameters.
“With wider macro uncertainty affecting the sector, smaller developers are increasingly looking at ways to reposition existing properties to realize value or embark on smaller ground-up schemes which require a new type of funding to match the risk profile of the project,” said Gavin Eustace, head of development at Octopus Property.
The new intermediate development product, for projects with build costs between £500,000 ($680,000) and £1.5 million ($2.04 million), is targeted at schemes that may require more technical support than a typical refurbishment, but are shorter-term, require less monitoring and are lower down the risk curve than a normal developm
