UK based specialist real estate lender and investor, Octopus, is to reach its tentacles into Ireland by starting to lend commercial loans here.

The company, part of the Octopus Group, will be offering short-term bridging finance beginning at €500,000.

Octopus will charge an arrangement fee of 0.5% and rates beginning at 0.75% per month, on loan to value ratios of a maximum of 70%.

The financing terms will be a maximum of two years and a minimum of one month, with the product to be offered through brokers and direct to borrowers.

"Octopus Real Estate is a leading short-term lender in the UK market, having completed c. £2.0 billion of commercial loans over the last ten years," said James Nunn at Octopus Real Estate.

"We are known for our speed of execution, transparency and flexibility, and we want to introduce our service to a vibrant and growing new marketplace."

Octopus claims the Irish commercial real estate market is thriving and the move into Ireland is its first step in plans to grow its presence across Europe.

The company has completed over 3,800 loans valued at over £5.0 billion since it was set up.

The news came as CBRE Ireland reporter a significant uptick in transactional activity underway in 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 marked contrast to the first half, with the third quarter stronger than the two previous quarters combined in most sectors of the market.

CBRE also said that the months of September and October have been "phenomenally busy".

"The Irish economy is now firmly in the midst of a robust recovery with a very strong 2022 in prospect, despite current concerns about energy costs, inflation, and supply chain delays, all of which will hopefully alleviate in 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% in the year to the end of September, according to the latest MSCI Irish Property Index."

But CBRE Ireland also expressed frustration that negotiations are proving overly protracted in many sectors with transactions taking several months to complete in some cases.

As a result, it claims the extent of activity underway is not fully appreciated.