Precede Capital receives B Corp Certification

Precede Capital has been recognised by B Lab for its continued ESG and sustainability commitments, and ethical practices.

Outdoor communal area at the First Street co-living development in Manchester. Precede and Nomura have provided a £227m loan for the scheme, which will be constructed and managed by Downing | BTR News
Outdoor communal area at the First Street co-living development in Manchester. Precede and Nomura have provided a £227m loan for the scheme, which will be constructed and managed by Downing.

Real estate development lending platform Precede Capital Partners has received B Corp certification, signifying the firm’s commitment to ESG and responsible business practices. This designation follows a rigorous assessment and verification process. 

Administered by the global non-profit organisation B Lab, B Corp certification is granted to companies which are part of a global community of businesses that meet high standards of social and environmental performance, transparency and legal accountability.

As of February 2023, over 1,100 UK-headquartered businesses have now achieved B Corp status. Fewer than 40 of these firms were in the real estate sector, with an even smaller number of real estate investment managers.

“We are acutely aware that the built environment has a unique role to play in tackling climate change and have therefore built a platform with deeply embedded social and environmental values which guide our business strategy. Receiving B Corp certification was a milestone we were naturally determined to achieve. By continuing to provide developers with a financial incentive to meet pre-agreed sustainability targets, we can help support the creation of a truly sustainable UK residential sector.”

Karen Dunstan, General Counsel and Co-Founder, Precede Capital

Since launching in March 2021 with the backing of TowerBrook Capital Partners – the first mainstream private equity firm globally to receive B Corp recognition – Precede Capital has developed a proprietary Green Loan product to offer financial incentives to developers that mitigate the increased costs associated with building low-carbon, environmentally sustainable homes.

The firm’s broader ESG framework is focused on instilling sustainability values into lending products and asset management services, whilst also creating a values-led culture, with strong business ethics, which invests in human capital both inside and outside of the business. 

“We founded Precede with the backing of TowerBrook Capital Partners, the first mainstream private equity firm in the world to receive B Corp recognition, and from the outset we have put ESG at the heart of our approach. Almost three years on, the business case for providing sustainable finance and lending opportunities is stronger than ever. With important regulation such as the Future Homes Standard on the horizon, it is critical that we continue to empower our partners and future-proof their projects, as part of the wider effort to deliver the new homes the UK urgently needs.”

Randeesh Sandhu, CEO and Co-Founder, Precede Capital

These commitments are reflected in Precede Capital’s recent deals. This year, the firm provided a £227m whole-loan facility to Downing Living for First Street, a co-living development in the heart of Manchester with heating provided by air source heat pumps, EV charging points and rooftop solar PV provision.

In addition to this, Precede Capital is facilitating one of Birmingham’s largest regeneration projects with its £188m whole-loan facility to finance Great Charles Street, a Build to Rent development which is targeting BREEAM ‘Excellent’ for its commercial areas and is expected to achieve strong energy performance and a low Scope 1 and 2 emissions profile.