Précis Capital Partners, the real estate development lending platform, has inked a funding partnership with the Global Credit segment of investment firm Carlyle.
The partnership will finance development loans in the residential asset class in the UK, and has already completed its first two loans, with a cumulative value of over £330 mln.
Précis Capital, with funds and accounts managed by Carlyle’s Global Credit Segment and funds managed by global alternative asset manager Apollo Global Management partnered as senior lenders for a £251 mln five-year whole-loan facility to Moda Living.
The facility will be used to finance the development of a 467-home build-to-rent scheme in Nine Elms, London, including 30 Discounted Market Rent homes and 103 affordable rent homes to be managed by Paragon Asra Housing.
The scheme is scheduled to be delivered in Q2 2025, with construction undertaken by London Square. It is located across the road from the US Embassy in the Vauxhall Nine Elms Battersea neighbourhood.
Taj Sidhu, head of Carlyle’s European Credit Opportunities advisory team, said: 'We are delighted to partner with Précis Capital to invest in the Embassy Boulevard development, a high-quality asset well situated in the heart of London.
'Leveraging our extensive global and regional insights, and investing experience of Carlyle’s global credit platform, we look forward to identifying further opportunities in the growing UK residential development financing market together with Précis Capital.'
The three funders previously extended a £76 mln three-year whole-loan facility in October 2021 to CHR London, a joint venture between Great Marlborough Estates Ltd and Tophill Development Ltd, secured against 408-430 Chiswick High Road.
Randeesh Sandhu, CEO and co-founder of Précis Capital, said: 'The inaugural two loans extended through our partnership with Carlyle, both in collaboration with Apollo, demonstrate the kind of complex and large-scale financings we can provide to high-calibre borrowers.'
Ben Eppley, partner and head of European Commercial real estate debt at Apollo, said: 'We were pleased to work with two strong capital partners in Précis Capital and Carlyle to provide senior financing for Embassy Boulevard, which will be a welcome addition to Nine Elms.
'This is the second residential transaction Apollo has completed with Précis Capital and Carlyle and we look forward to working with them on additional transactions in the future.'
Précis Capital was advised on the partnership by Addleshaw Goddard, and on the transaction by Eversheds Sutherland, Dalbergia and the BNP Paribas valuation team.
