Octopus Property launches next institutional real estate debt fund

Jessica Nangle

October 2, 2017

cash purchases

Octopus Property has completed a first close of £115m for its Commercial Real Estate Debt Fund II (CRDF II).

The institutional debt strategy focussed on the UK commercial property market follows the successful deployment of CREDF I, an £130m fund launched three years ago and CREDF-S which was a £35m fund raise from existing investors in 2016 due to sustained institutional demand.

Ludo Mackenzie, head of commercial property at Octopus Property and manager of the Commercial Real Estate Debt Funds, said: “Repeat commitments from CREDF I investors, together with new investment, are testament to the continued strength and growth of the business.

“There remains a real need for commercial property finance in the UK market, and we have built a reputation and track record of delivering bespoke solutions, quickly and efficiently.”

Mario Berti, chief executive of Octopus Property, added: “CREDF II is an exciting opportunity for our commercial lending team, who have demonstrated their ability to deploy capital across a range of lending opportunities and deliver attractive returns.”

The CREDF II is targeting £200m at final close which will provide sufficient funding to complete loans with a combined value in excess of £500m over the next three years.

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