Octopus Real Estate has provided a £33m (€39.5m) loan to Wavensmere Homes and Montane Partners to fund a £50m redevelopment project in South West England.
The loan will fund the redevelopment of the North Place surface car park, to be known as Arkel Court, located within Cheltenham’s Central Conservation Area.
Arkle Court, comprising 147 houses and apartments, started site works last month, with groundworks scheduled to commence next month.
Construction for the 75 three-bedroom townhouses and 72 one- and two-bedroom apartments is anticipated to take two and a half years to complete, with the first phase of the project scheduled for home handovers in the third quarter of 2026.
This financing, arranged by debt advisory boutique BBS Capital, marks the third time Octopus Real Estate – part of Octopus Investments and a specialist real estate investor and lender – and Wavensmere Homes have teamed up over recent years to deliver brownfield regeneration.
Sam Wisker, investment manager – commercial & development debt, Octopus Real Estate, said: “At Octopus Real Estate, we always want to work with best-in-class developers who are aligned with our vision and values. Wavensmere has a strong reputation for delivering high-quality, sustainable homes.
“We are thrilled to be once again working with this dynamic team, and look forward to seeing the positive impact the Arkle Court regeneration project will have on the local area.”
James Dickens, managing director of Wavensmere Homes, said: “There has been a desire to redevelop this key site for Cheltenham for over a decade. Receiving development finance from Octopus enables us to continue the renaissance of the wider St Paul’s area by injecting millions into delivering 147 much-needed energy efficient homes.
“While we are already on site, this funding facility enables us to confirm delivery timescales. The quality of our Arkle Court development will showcase what can be achieved when the borough council and developers work together to unlock complex regeneration schemes for the benefit of Cheltenham.”
Nick Spencer, co-founder at Montane Partners, said: “It took years of partnership working to unlock this site and break ground. We are thrilled that this landmark brownfield site will bring about the delivery of highly sustainable family houses and apartments, with over 100 construction jobs created in the process.
“While the viability assessment for the project did not allow for 20% affordable housing, we will proudly be delivering this allocation on-site, along with a contribution of over £1m for upgrades towards local education, libraries and the Cotswold Beechwoods Special Area of Conservation. In addition, a high proportion of the new homes will be aimed at first time buyers and young families, with attainable prices set significantly below prime Cheltenham values.”
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