Cheyne Capital has provided a £219m development loan to London retirement living developer Riverstone.

Cheyne Capital said funding, which has been provided to fund Riverstone’s new Kensington development, represents the UK’s largest single asset debt deal in the later living sector.

The transaction is the second deal between Cheyne Capital and the Goldman Sachs-backed London retirement living developer. In March last year, Cheyne Capital provided a £99m development loan facility for Riverstone’s Fulham Riverside development which is due to open in the second half of 2this year.

Filippo Alessandria of Cheyne Capital said: “Our continued support of the Riverstone model is a testament to our confidence in their ability to source great London locations for their best-in-class later living schemes – the Kensington scheme is further proof of this and we look forward to its opening later this year.

“We are also particularly supportive of Riverstone’s sustainability plans, in terms of both the environment and local community engagement, and, to reflect this, have agreed ESG-related ratchets in our loan terms.”

Simon Loveridge, Riverstone’s CFO, said: “Securing further finance from Cheyne Capital for our Kensington residence reinforces the appeal of the Riverstone offering and our plans to deliver a platform of scale in prime London locations. We are focused on delivering residences that are at the forefront of sustainable innovation and are committed to working with the local communities we operate in.

“The model, which has seen great success internationally, is set to experience further demand over the coming years in the UK as its over 65s population continues to grow. Riverstone’s proposition is ideally placed to meet increasing demand.”

Riverstone is currently developing three major sites in London, in Fulham, Kensington and Hampstead Heath, and has a near-term pipeline of several further sites.

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