Octopus Investments is targeting a raise of £750m for its newly launched Octopus Real Estate Debt Fund IV (OREDF IV)1.
OREDF IV will fund senior-secured acquisition, development and stabilisation loans across all of the key living sectors and will also have an allocation to offices, industrial and retail.
As an Article 8 Fund, OREDF IV aims to deliver sustainable returns by backing developers who are delivering buildings that not only enhance the built environment but meet modern environmental targets that are fit for the future.
The team and fund will be led by Ludo Mackenzie and Andy Scott who are co-heads of real estate debt at Octopus.
Mackenzie said: “We are committed to helping developers and investors unlock real estate value. With our focus on refurbishment, repositioning and redevelopment, we can transform underused or neglected spaces into vibrant and thriving places, creating jobs, boosting local economies, and providing much-needed homes. This is productive finance at its core; lending against depreciated properties and brownfield land, enhancing the built environment and generating good risk adjusted returns.”
Scott added: “Our debt team offers bespoke lending solutions for our developer clients, tailored to the specific needs of each scheme. As a non-bank lender, we can be flexible and efficient in our approach, providing reliable funding throughout the UK. We work closely with clients to ensure the smooth and successful delivery of their projects.”
Ed Clough, managing director of Octopus Real Estate, said “Building on the strong track record of our previous debt funds, the Octopus Real Estate Debt Fund is focused on delivering value for all partners. For investors, that means providing access to the real estate sector through the buffer of senior secured real estate loans.
“For developers, we are addressing the funding gap by providing tailored, flexible bridge and development funding solutions for transitional real estate. And for communities, we are unlocking old and unproductive real estate assets to provide modern, energy efficient places for people to live and work.”
