Precede Capital and QuadReal provide £105m financing to fund BTR development in West London
Posted on 27 February 2024

Precede Capital Partners, the B Corp certified real estate development lending platform, and QuadReal Property Group, a global real estate investment, operating and development company headquartered in British Columbia, today announce that they have provided a £105.2 million three-year whole-loan facility to a London build-to-rent joint venture between BlackRock and Outpost Management.

The loan will be used to fund the acquisition and development of a multifamily build-to-rent building in North Acton, London, from offsite specialist Tide Construction. Tide will act as developer and contractor of the scheme, which will be delivered using its volumetric system, Vision. The development is scheduled for completion in August 2025.

The financing is provided through Precede’s partnership with QuadReal, which acquired a minority shareholding in Precede Capital in October 2022 and has committed up to £1 billion to deploy into its development loans.

The scheme will comprise 462 self-contained studio units in a 32-storey building, with amenities including a roof terrace, cinema, library, gym, co-working space and dining rooms. Close to North Acton tube station in West London’s Borough of Ealing, where the demand for residential property significantly outweighs supply, the scheme will provide professionally managed, highly amenitised private accommodation for a growing community of private renters, including a strong demographic of students and young professionals. The project coincides with major regeneration in the area.

David Jerrard, Chief Credit Officer at Precede Capital, said: “We are delighted to partner with BlackRock and Outpost Management for our inaugural modular construction deal, which offers strong advantages including increased efficiency while limiting the impact of key risks to the project. This financing underpins our core commitments to address growing demand for build-to-rent assets in London and invest in high-quality sustainable assets, underscoring our ability to finance high-calibre developments across the UK.”

Kristian Branum-Burns, QuadReal Senior Vice-President, International Real Estate, Europe, said: “The living sector continues to be a key conviction of QuadReal’s global investment strategy. Enclave fits within our strategy, delivering a high quality, service-led residential scheme in the heart of a thriving pocket of West London.”

“We are excited to be working alongside BlackRock and Outpost on our first Green Loan in partnership with Precede.”

The financing represents Precede Capital’s inaugural development loan for a modular construction project, with the majority of construction to be completed in a controlled factory environment, increasing quality control, efficiency and cost predictability, while reducing congestion and environmental impact on-site.

The development is targeting a BREEAM “Excellent” rating and an Energy Performance Certificate (EPC) score of “A-B” and exceeds the Green Building and Energy efficiency categories of Precede’s Green Loan Framework eligibility criteria. Precede Capital will track the environmental impact and emissions reductions of the scheme, reporting on the latter annually to its ESG and Credit Committee.

The loan brings the total value of development loans completed by Precede Capital to c.£1.8 billion. This site represents the latest BTR scheme acquired and developed by the joint venture between BlackRock and Outpost, with previous projects including a forward purchase of Enclave: KX and a forward funding of Lower Essex Square, an Enclave branded BTR development in Birmingham.

Troy Tomasik, Founder and CEO for Outpost Management, said:We’re delighted to have acquired this fantastic development, partnering with BlackRock, Precede Capital Partners and QuadReal, to deliver another market-leading scheme with Tide. We look forward to bringing Enclave to Acton, providing a hub for the local community and offering lifestyle-enabling homes with conveniences and services, that will free future residents from the burdens of domestic life.”

Christy Hayes, CEO of Tide and Vision, said: This partnership with global investors Precede Capital and QuadReal, secured to close The Castle JV with Outpost and Blackrock, testifies to our compelling offer. This deal demonstrates the level of quality, sustainability, and sophistication that Tide and Vision’s volumetric technology can deliver, supporting the much-needed provision of housing to the UK.”

Precede Capital was advised by Evershed Sutherland. Dalbergia provided construction due diligence for the lenders, CBRE acted on the Valuation and Longevity Partners on ESG due diligence. BlackRock and Outpost Management were advised by JLL and Simmons & Simmons.