QuadReal Property is investing in UK real estate development lending platform Précis Capital Partners.
The global real estate investor has acquired an undisclosed stake in Précis Capital and plans to commit up to £1bn (€1.1bn) to deploy into development loans. Précis Capital’s founding institutional shareholder TowerBrook will retain a significant shareholding.
As part of the deal, Précis Capital, which was launched in March last year, is being rebranded as Precede Capital Partners. The company provides finance for large-scale real estate projects across the UK and has originated and arranged £1.5bn worth of loans to finance the construction of residential properties.
With QuadReal’s backing, Precede Capital expects to arrange an additional £3bn-plus of loans through capital structuring via syndication and leverage.
Jay Kwan, managing director and head of Europe at QuadReal, said: “The living sector is one of the key pillars within our global areas of conviction. Partnering with the deep bench of seasoned professionals at Precede Capital in this area, at this time, is a natural extension of both investment priorities and advancing our real estate credit business to the UK from within North America.
“Working closely with the TowerBrook team and its best-in-class fiduciaries only enhances what this group of professionals can offer and achieve.”
Randeesh Sandhu, CEO and co-founder of Precede Capital, said: “Our specialist team has built a reputation for successfully structuring large and complex financial solutions, and this partnership with a leading global institution is a strong endorsement of our track record.
“We look forward to working closely with QuadReal as we continue to back sponsors and developers delivering best-in-class living assets.”
Joseph Knoll, managing director at TowerBrook, said: “Since its launch, Precede Capital has established itself as a significant provider of development lending in the UK.
“The new partnership with QuadReal and its extensive experience as a real estate manager and credit provider will accelerate that journey.”
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