UK-based specialist real estate lender and investor Octopus will expand its tentacles in Ireland by starting commercial loans here.
The company, which is part of the Octopus group, will offer short-term bridging financing from € 500,000.
Octopus will charge an arrangement fee of 0.5% and rates starting at 0.75% per month, on loan-to-value ratios of up to 70%.
The financing terms will be a maximum of two years and a minimum of one month, the product being offered through brokers and directly to borrowers.
“Octopus Real Estate is one of the leading short-term lenders in the UK market, having made approximately £ 2.0 billion in commercial loans over the past ten years,” said James Nunn of Octopus Real Estate.
“We are known for our speed of execution, transparency and flexibility, and we want to introduce our service to a new dynamic and growing market. “
Octopus says the Irish commercial real estate market is thriving and the move to Ireland is the first step in its plans to increase its presence across Europe.
The company has entered into more than 3,800 loans valued at over £ 5.0 billion since its inception.
The news came as the CBRE Ireland reporter reported a significant increase in ongoing transactional activity across all sectors of the commercial property market since the summer.
In its latest bimonthly report, it said the volume of activity in the second half of the year was in stark contrast to the first half, with a third quarter stronger than the previous two quarters combined in most areas of the market. .
CBRE also said September and October were “phenomenally busy”.
“The Irish economy is now firmly in the midst of a robust recovery with a very strong outlook for 2022, despite current concerns over energy costs, inflation and supply chain delays, which hopefully it will subside over time, “said Marie Hunt, Head of Research at CBRE Ireland.
“A recovering economy bodes well for the Irish commercial property market, which is now firmly in growth mode, having achieved a positive annual total return of + 2.6% over the year until the end of September , according to the latest MSCI Irish Property index. “
But CBRE Ireland has also expressed frustration that negotiations are proving to be too long in many sectors, with transactions taking several months in some cases.
As a result, he claims that the scale of the ongoing activity is not fully appreciated.