The UK arm of UAE-based real estate developer Arada has secured a £152m (€175.3m) loan from ICG Real Estate to fund a residential development in London.
Mixed-use developer Arada London has secured the loan to fund the acquisition and development of two residential buildings at 100 Avenue Road in Swiss Cottage, north-west London. Construction is already underway at the 0.93-acre site, with completion scheduled for autumn 2028.
The latest deal represents the third transaction between ICG’s real estate credit business and Arada London. ICG previously provided financing to Regal for two London projects prior to its acquisition by Arada.
Jai Patel, managing director at ICG Real Estate, said: “Arada London has an impressive track record of delivering large-scale, landmark developments across the city of London and we are delighted to be collaborating with them on our third transaction together.
“The development is strategically located in Swiss Cottage, which has a global reputation for being a highly desirable residential area with excellent transport links and easy access to Hampstead Heath, Regent’s Park and several of London’s top schools.
“This scheme will deliver an attractive turnkey product into a highly supply-constrained submarket, alongside a significant affordable housing provision that will serve both domestic and international residents.”
Marc Eden, investment director, Arada London, said: “ICG Real Estate combines disciplined underwriting with a strong understanding of how residential projects are delivered in practice, from start to finish. At 100 Avenue Road, the ICG team proved that they share Arada London’s clear focus on quality, sustainability and long-term value, alongside the delivery of critical affordable housing.
“We are pleased to be working together again to bring forward a high-quality scheme in a well-connected part of London.”
To read the latest IPE Real Assets magazine click here.
