Precede Capital announces an £80m whole loan financing of a luxury Later Living development in Hampstead with Carlyle and Nomura
Posted on 23 June 2022

We are pleased to have provided an £80m whole loan facility, in partnership with Carlyle’s (NASDAQ: CG) global credit platform and global financial services group Nomura, to EPISO 5, a fund managed by Tristan Capital Partners. The facility will be used to finance the development of “The Oren”, a premium Later Living development in Hampstead, London.

Within walking distance of Hampstead Village, the proposed scheme will include 46 units spread over four blocks and benefit from 50 parking spaces, a gym and spa, as well as a restaurant and bar area. Elysian Residences, a UK investor, developer and operator focused exclusively on the Later Living sector, will oversee both the development and subsequent operation of the scheme. Expected to be delivered in 2024, “The Oren” will help meet the UK’s well-documented undersupply of high-quality and purpose-built retirement living schemes, addressing long-term demographic trends.

Precede Capital Partners originated the loan and arranged the consortium of Lenders. The deal represents Precede Capital’s inaugural transaction in the Later Living segment and brings the total value of residential development loans completed by the firm to over £1.26bn. It also represents the fourth loan jointly provided with Carlyle under their funding partnership. .

David Jerrard, Chief Credit Officer of Precede Capital, said: “This financing will help tackle the chronic undersupply of purpose built later living housing within the UK retirement market, and we are looking forward to working closely with Tristan Capital Partners and Elysian Residences to deliver an outstanding luxury development for those in their later years. This latest loan is also testament to our growing partnership with Carlyle, our ability to collaborate with other blue-chip financial institutions like Nomura. We are committed to backing high-quality sponsors and developers working on significant, socially valuable schemes.”

Taj Sidhu, Head of Carlyle’s European Credit Opportunities advisory team, said: “We are excited to expand our partnership with Precede Capital, with the financing of this high-quality asset, ideally situated in a prime area of London. There is an important role to play in providing high quality later living housing in the UK and we are delighted to leverage the experience and resources of Carlyle’s global credit platform in support of that.”

Roger Cattermole, Head of Real Estate & Securitised Products, EMEA at Nomura, said: Nomura is delighted to partner with Precede Capital and Carlyle in supporting Tristan Capital Partners and Elysian Residences on this project within a socially important and undersupplied sector.”

Gwendal Kalkofen, Managing Director, Head of Debt at Tristan Capital Partners, said: This financing provides our EPISO 5 fund and Elysian Residences with a flexible financing structure to enable the delivery of ‘The Oren’, a luxury development which forms part of our later living strategy. We look forward to exploring further potential financing opportunities with Precede Capital and partners.”

Precede Capital was advised by Addleshaw Goddard, Gardiner & Theobald, Longevity Partners and Savills.