The Canada Pension Plan Investment Board (CPPIB) is providing £240m (€276.2m) in mezzanine debt to Lone Star’s UK developer, Quintain.

CPPIB’s Credit Investments subsidiary is financing the firm as part of a larger five-year, £800m facility.

Wells Fargo and AIG provided the remaining debt through a revolving senior position.

The financing will allow for the delivery of a new masterplan for Wembley Park, including new homes, venues, shops and workspace.

Geoff Souter, managing director and head of private real estate debt at CPPIB, said: “We are pleased to support Quintain and Lone Star in the work they are doing to redevelop the area surrounding Wembley Stadium into one of London’s most exciting destinations to live, shop and work.

“This investment fits well with our strategy of providing customised, large-scale funding solutions to borrowers with high-quality underlying real estate assets.”

The Wembley Park project will include 4,800 new homes, of which CPPIB said more than one-third will be affordable.

Quintain acquired its interest in the 85-acre Wembley Park development in 2002. 

Between now and 2020, it is expected that a further £1bn will be invested at Wembley Park as Quintain develops around 1m sqft of office space and a further 6,000 homes.

US private equity firm Lone Star bought Quintain last year.

The private equity investment manager’s Real Estate Fund IV, through its Bailey Acquisitions vehicle, paid £700m for Quintain.