Canary Wharf Group receive £535m loan for Wood Wharf BTR

Canary Wharf Group has secured a loan from Cain International and Starwood Capital Group for a new Build to Rent development.

Canary Wharf Group has received a £535m loan from Cain International and Starwood Capital for a new Build to Rent scheme within its Wood Wharf development | BTR News
Canary Wharf Group has received a £535m loan from Cain International and Starwood Capital for a new Build to Rent scheme within its Wood Wharf development.

Privately held investment firm Cain International and controlled affiliates of private investment firm Starwood Capital Group, have agreed on a £535m loan to Canary Wharf Group for the next phase of development of its Wood Wharf residential scheme. Cain and Starwood Capital will each provide half of the agreed development loan – one of the largest in the UK in the past 12 months.

Part of the wider Canary Wharf estate, Wood Wharf Phase 3 will deliver a 1,308-home Build to Rent scheme split across three towers and two buildings, alongside c. 26,300 sq ft Net Internal Area (NIA) of ancillary commercial space.

“This financing agreement is testament to the success of our residential offering at Canary Wharf Group and the strength of our lender relationships. We have more than 3,500 residents living at Canary Wharf today in award-winning buildings, with access to world-class amenities on the estate as well as incredible transport links.”

Becky Worthington, CFO, Canary Wharf Group

The scheme, which includes 295 affordable homes, will become part of the mixed-use neighbourhood in Wood Wharf. The development is in phases, with completion expected from end of 2025 to Q1 2027. Wood Wharf Phase 3 will be delivered with a target Level 4 Code for Sustainable Homes across the private market properties, and BREEAM Excellent on the commercial space.

“This was an opportunity to deepen an existing relationship with an experienced sponsor while increasing our exposure to a market sector where we have comprehensive experience. Canary Wharf is a proven location for Build to Rent schemes, with premium rental values, growing occupancy levels and substantial investment appetite despite market headwinds, and we look forward to supporting Canary Wharf Group in its ambition to deliver best-in-class homes in one of the UK capital’s most dynamic neighbourhoods.”

Graham Keable, Managing Director (MD) – Real Estate Debt, Cain International

Wood Wharf is expected to consist of over 3,600 new homes in addition to over nine acres of public spaces, a GP surgery and a school.

As part of this transaction, the asset is being transferred at full market value up the group structure out of the bond group; reducing development risk within Canary Wharf Group Investment Holdings plc. 

“We are delighted to support Canary Wharf Group in this transaction. In recent years, Canary Wharf has become a vibrant, mixed-use destination and Wood Wharf Phase 3 will further enhance this transition. The financing builds on our strategy of supporting best-in-class sponsors in sectors with strong market fundamentals.” 

Harvey Sandhu, Vice President, Real Estate Debt, Starwood Capital