Real estate lender and investor Octopus Real Estate has agreed upon a funding partnership with affiliates of Bayview Asset Management to provide two-to-five-year senior investment debt to the UK commercial real estate market. The funding partnership has an initial commitment of GBP450 mln (EUR540 million).
Having identified an undersupply of loans in the smaller commercial investment debt market, the funding will target loan opportunities up to GBP25 million, Octopus said.
Nick Westoby, commercial fund manager, Octopus Real Estate, said: 'Today’s announcement represents another exciting milestone in Octopus’ longstanding commitment to the UK commercial real estate debt market. The structural undersupply within the sub-GBP25 million part of the market provides significant opportunity and plays to our strengths. The granularity and liquidity of smaller loan sizes have been tested over the pandemic, showing robust performance. The opportunity to partner with Bayview was compelling, given their deep understanding of commercial real estate and wider corporate values.'
Benjamin Davis, CEO of Octopus Real Estate, said: 'Our partnership with Bayview further demonstrates the excellent range of opportunities available for local and international institutional investors to participate in the UK real estate market. It follows a successful period for Octopus, having recently established the GBP175 million Greener Homes Alliance with Homes England and announced a record GBP462 million fundraise for our UK commercial bridging strategy. With specialist expertise across the residential, commercial and development sectors, Octopus is uniquely positioned to deliver upon the demand from institutional investors for high-quality, diverse real estate assets that meet a range of investment criteria.'
Source: propertyeu.info on the 11th of January