QuadReal Property-backed Precede Capital Partners, in partnership with global financial services group Nomura, has provided a £227m (€258m) loan to Downing Living to help develop a multifamily project in the northwest of England.
Precede Capital said the four-year whole-loan will be used to finance the construction of the First Street development in Central Manchester.
The First Street development, consisting of 1,790 units across three buildings, will be targeted at new graduates and young professionals. Completion of phase one is scheduled for August 2024, with phase two scheduled for delivery in March 2025.
Earlier this month, global real estate investor QuadReal Property acquired a stake in Précis Capital which was then rebranded as Precede Capital Partners. Précis Capital was launched in March last year
QuadReal said at the time that it intended to commit up to £1bn to deploy into development loans. With QuadReal’s backing, Precede Capital expects to arrange an additional £3bn-plus of loans through capital structuring via syndication and leverage.
The whole loan financing of Downing Living’s Manchester project is the first originated and arranged by Precede Capital since the partnership with QuadReal Property.
The facility is also Precede Capital’s first development loan in the north of England and second jointly provided with Nomura, bringing the total value of residential development loans completed by the firm to over £1.5bn.
George Downing, a founder of the Downing group of companies, which owns Downing Living, said: “First Street itself is part of a wider story of investment and confidence in Manchester, a future-proofed ‘15 Minute City’ where we will offer brilliant options to live, work and play on your doorstep.
“We have an excellent track record, working closely with the council, to deliver transformational city-centre regeneration schemes.”
David Jerrard, chief credit officer at Precede Capital, said: “We are delighted to have closed this financing for a high-quality asset and to have provided the Downing Living team with the certainty and backing required to deliver an important project that will help meet the sustained demand for co-living schemes in this market.
“We are also particularly pleased to have closed our inaugural deal in the north of England, an important milestone which is a testament to our team’s extensive industry relationships and our ability to identify and transact on high-calibre opportunities across the UK.”
Zhuu Ming Ang, co-head of EMEA real estate financing at Nomura, said: “We are pleased to partner with Precede Capital and QuadReal Property Group to finance the Downing Living development.
“This will help address the significant undersupply of residential units in the city of Manchester, especially for underserved single households.”
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