Macfarlanes advises Octopus Real Estate on closing of third commercial real estate debt fund

13 June 2022

Macfarlanes has advised specialist UK property lender Octopus Real Estate on its latest fund, Octopus Commercial Real Estate Debt Fund III (CREDF III), which has successfully held a final closing with aggregate commitments to the strategy of £500m.

CREDF III is focused on originating short-term loans secured against UK commercial property. It plans to lend more than £1bn across sub-sectors including logistics, purpose-built student accommodation, supermarkets, retail warehousing, residential development land and hotels over the next three years.

The fund received commitments from investors including pension funds and insurers across the UK and Europe.

The Macfarlanes team was led by investment management partner Sam Brooks alongside associate Miriam Cable. Tax expertise was provided by partner James McCredie and associate Charlie Tannock.

Sam Brooks comments: “Having acted for Octopus on their previous real estate debt funds, we are really pleased to advise them once again on CREDF III, which represents a substantial increase in capital available to the strategy.”

Ludo Mackenzie, Head of Commercial Lending at Octopus Real Estate: “We are delighted to hold a final close at our hard cap despite the headwinds being faced in the capital markets. Once again, Macfarlanes have been a great partner, working with us on our fifth fundraise in the CREDF series of commercial real estate debt funds.”