Precede Capital Partners has partnered with investment firm Carlyle (NASDAQ: CG), global alternative asset manager Apollo Global Management (“Apollo”) and private real estate investment firm Crosstree Real Estate Partners (“Crosstree”) to provide a £772m loan that will fund the completion of construction at One Nine Elms, a residential-led mixed-use scheme in London. The borrower is R&F One (UK) Ltd, the UK subsidiary of Guangzhou R&F Properties, a leading Chinese developer.
One Nine Elms will be one of the capital’s highest-quality developments in the coming years, comprising two towers – the 57-storey City Tower, consisting of 334 for sale prime residential units, and the 42-storey River Tower. The River Tower will consist of a 203-room five-star Park Hyatt hotel and 103 Park Hyatt-branded luxury apartments that will exclusively benefit from all the hotel amenities, including a swimming pool, 24-hour concierge, sky lounge and terrace. This will be the first Park Hyatt Hotel in London and the first Park Hyatt-branded residences.
The project also includes 57 affordable housing units forward sold to Thames Valley Housing.
The shell and core of both buildings are largely completed with fit-out work to be carried out. The funding will allow the lead contractor Multiplex to continue progress on site, with completion for the project set for November 2023.
The loan is the largest that Precede Capital has arranged since its launch in March 2021. It also represents the third loan jointly provided with Carlyle under their funding partnership, and third with Apollo.
Randeesh Sandhu, CEO and co-founder of Precede Capital, said: “Precede Capital is delighted to work with R&F One (UK) and the consortium of lenders on One Nine Elms. The project will deliver best-in-class high-end units, coupled with a world-class luxury hotel brand and exceptional amenities. We are confident of strong future demand for the units, driven by the successful regeneration of the local area with its thriving leisure and entertainment scene, the largest Zone 1 retail area in London, the green amenity with Battersea Park in proximity, excellent connectivity with the opening of the Northern Line extension and the remarkable success in attracting world-class tenants, including the embassies of the USA and Netherlands and blue-chip corporate occupiers such as Apple.”
Zhixiong Guan, chairman of R&F One (UK) said: “We are proud to invest in London and the United Kingdom as a whole – to provide new homes, create significant employment opportunities and spearhead the regeneration of one of the most important neighbourhoods in the capital.”
“Working in partnership with a best-in-class team, we will complete One Nine Elms next year and look forward to sales commencing later this year, and subsequently welcoming our first residents and guests to London’s first Park Hyatt Hotel and Residences.”
The Lenders for One Nine Elms were advised on the transaction by Linklaters, Eversheds and White Case (legal), Dalbergia (construction due diligence), Savills (valuation) and Longevity Partners (ESG). The Borrower was represented by BCLP and Taylor Wessing.