Precede and QuadReal fund The Castle BTR scheme

Precede Capital and QuadReal provide funding to the BlackRock and Outpost Management joint venture for The Castle Build to Rent scheme.

The Castle Build to Rent scheme. Precede and QuadReal provide funding for the development of the scheme | Blackrock | Outpost Management | BTR News
The Castle Build to Rent scheme. Precede and QuadReal provide funding for the development of the scheme.

B Corp certified real estate development lending platform Precede Capital Partners and real estate investor, operator, and developer QuadReal Property Group have provided a £105.2m 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 The Castle 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. Scheduled for completion in August 2025, The Castle development will deliver 462 self-contained studios in a 32-storey building. Amenities includes a roof terrace, cinema, library, gym, co-working space and dining rooms.

“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.” 

David Jerrard, Chief Credit Officer, Precede Capital

Situated close to North Acton tube station in West London’s Borough of Ealing, the development will provide private accommodation for a growing community of private renters, including a strong demographic of students and young professionals. The scheme also coincides with major regeneration in the area.

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 £1bn to deploy into its development loans.

“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.”

Christy Hayes, CEO, Tide and Vision

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

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

“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.”

Kristian Branum-Burns, Senior Vice-President, International Real Estate – Europe, QuadReal

The loan brings the total value of development loans completed by Precede Capital to c.£1.8bn. Previous projects by the BlackRock and Outpost Management joint venture include a forward purchase of Enclave: KX and forward funding of Lower Essex Square, an Enclave branded Build to Rent development in Birmingham.

“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.”

Troy Tomasik, Founder and CEO, Outpost Management

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.