Octopus funds Alumrose’s London PBSA

Alumrose secures a loan from Octopus Real Estate to complete the purchase of land for a purpose-built student accommodation (PBSA) scheme in Elephant and Castle.

The site, which has been acquired by Alumrose, has been funded by Octopus Real Estate with plans for it to deliver PBSA homes in London | Alumno | Melrose Capital | PBSA News
The site, which has been acquired by Alumrose, has been funded by Octopus Real Estate with plans for it to deliver PBSA homes in London.

Specialist real estate investor and lender and arm of Octopus Investments – Octopus Real Estate – has provided a commercial loan to Alumrose to complete the purchase of a site in Elephant and Castle, Central London.

The site contains detailed planning consent for the development of a 244-bed PBSA scheme. Located in a major Zone 1 transport hub, residents will be within 20 minutes journey of seven London universities.

“We’re delighted to have provided the funding required to purchase this site. We specialise in finance for transitional assets: as a non-bank lender we can tailor each loan to the requirements of the borrower. At Octopus Real Estate we’re committed to funding the delivery of quality accommodation, and we’re pleased to play a role in increasing the supply of student accommodation in the capital.”

James Nunn, Fund Manager, Octopus Real Estate

The borrower intends to develop 206 studio rooms and 38 two-bedroom apartments, all benefiting from ensuite bathrooms. Permission has also been granted for 1,500 sq ft of retail space on the ground floor, providing amenities for local residents.

The supply and demand imbalance continues to affect the PBSA market, particularly in London. The essential loan has been provided to Alumrose – the joint venture between Melrose Capital and Alumno Group.

“Site origination is a key driver in our development strategy, and we are very pleased to have worked with a lender who shares our commitment to placemaking and making a positive impact on the local community. We are extremely excited about this project due to its zone 1 location and close proximity to various University campuses.

“We are grateful to Octopus Real Estate for helping us progress and develop high quality purpose-built accommodation for hundreds of students, at a time when securing living space in the capital is harder than ever. We would also like to thank our JV partner Melrose Capital for their continued support and advice.”

David Campbell, Managing Director, Alumno