Precede Capital Partners and QuadReal Property have provided a £105.2m (€122.9m) loan to fund a UK build-to-rent (BTR) project being developed by BlackRock’s private markets arm and Outpost Management.
Last week, the UK residential partnership between the BlackRock private markets real estate business and Outpost Management announced the acquisition of the 462-unit The Castle scheme in North Acton, London in a forward-funding deal.
The Castle, which is being developed by contractor Tide, is a 220,000sqft residential-led mixed-use scheme, due to open in summer 2025 and will be operated under Outpost’s Enclave brand.
Precede and QuadReal said the three-year whole-loan will be used to fund the acquisition and development of a multifamily BTR building in North Acton.
The financing is provided through Precede’s partnership with QuadReal, which acquired a minority shareholding in Precede in October 2022 and has committed up to £1bn to deploy into its development loans.
The financing represents Precede’s inaugural development loan for a modular construction project, with the majority of construction to be completed in a controlled factory environment.
David Jerrard, chief credit officer at Precede Capital, said: “We are delighted to partner with BlackRock and Outpost Management for our inaugural modular construction deal, which offers strong advantages including increased efficiency while limiting the impact of key risks to the project.
“This financing underpins our core commitments to address growing demand for build-to-rent assets in London and invest in high-quality sustainable assets, underscoring our ability to finance high-calibre developments across the UK.”
Kristian Branum-Burns, QuadReal’s SVP of international real estate in Europe, said: “The living sector continues to be a key conviction of QuadReal’s global investment strategy. Enclave fits within our strategy, delivering a high quality, service-led residential scheme in the heart of a thriving pocket of West London.
“We are excited to be working alongside BlackRock and Outpost on our first green loan in partnership with Precede.”
Troy Tomasik, founder and CEO of Outpost Management, said: “We’re delighted to have acquired this fantastic development, partnering with BlackRock, Precede Capital Partners and QuadReal, to deliver another market-leading scheme with Tide.”
The Outpost and BlackRock joint venture, which has already invested £500m, plans to commit an additional £500m in UK residential assets.
Christy Hayes, CEO of Tide and its offsite manufacturing arm Vision, said: “This partnership with global investors Precede Capital and QuadReal, secured to close The Castle JV with Outpost and Blackrock, testifies to our compelling offer.
”This deal demonstrates the level of quality, sustainability, and sophistication that Tide and Vision’s volumetric technology can deliver, supporting the much-needed provision of housing to the UK.”
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