Real estate development lending platform Précis Capital Partners and QuadReal Property Group, a global real estate investor announce a new partnership. QuadReal has acquired an interest in Précis Capital, committing up to £1bn to deploy into its development loans. TowerBrook, Précis Capital’s founding institutional shareholder, retains a significant shareholding.
The development lending platform was advised on the transaction by Greenburg Traurig and JLL Corporate Finance. QuadReal was advised by K&E, Deloitte and Mourant Ozannes, and TowerBrook was advised by Goodwin Proctor and PwC.
Précis Capital is concurrently rebranding as Precede Capital Partners. Since launching in 2021, Precede Capital (then Précis Capital) has originated and arranged loans totalling £1.5bn to finance the construction of residential properties in the UK. The UK-based lending platform partners with best-in-class developers, real estate sponsors, banks and institutional investors, and funds a range of living assets including Build to Rent.
“We are delighted to partner with QuadReal as we enter the next stage of our evolution as a reliable financing partner to high-calibre borrowers. Our specialist team has built a reputation for successfully structuring large and complex financial solutions, and this partnership with a leading global institution is a strong endorsement of our track record. We look forward to working closely with QuadReal as we continue to back sponsors and developers delivering best-in-class living assets.”Randeesh Sandhu, CEO and Co-founder, Precede Capital
This new partnership with QuadReal will further enhance the opportunity to provide whole loan financing solutions. With the new investment, Precede Capital expects to arrange an additional £3bn+ of loans through capital structuring via syndication and leverage.
“Since its launch, Precede Capital has established itself as a significant provider of development lending in the UK. The new partnership with QuadReal and its extensive experience as a real estate manager and credit provider will accelerate that journey. We are excited about partnering with QuadReal and the new growth opportunities it will open for the Precede platform.”Joseph Knoll, Managing Director, TowerBrook
QuadReal Property Group is a global real estate investment, operating and development company headquartered in Vancouver, British Columbia. Its assets under management total CAN$67.1bn, of which CAN$10bn are real estate debt assets. The team seeks to deliver strong investment returns while creating sustainable environments that bring value to the people and communities it serves, closely aligning with Precede Capital and TowerBrook’s focus on responsible investment and their respective ESG strategies. QuadReal’s discerning approach to funding structures and development risk and its experience – including the management and development of over 60,000 residential suites globally – complement Precede Capital’s growth ambitions.
“The living sector is one of the key pillars within our global areas of conviction. Partnering with the deep bench of seasoned professionals at Precede Capital in this area, at this time, is a natural extension of both investment priorities and advancing our real estate credit business to the UK from within North America. Working closely with the TowerBrook team and its best-in-class fiduciaries only enhances what this group of professionals can offer and achieve.”Jay Kwan, Managing Director, Head of Europe for QuadReal