Real estate development lending platform – Précis Capital Partners – announces today (24 January 2022) a funding partnership with the Global Credit segment of investment firm Carlyle (NASDAQ: CG). The partnership has already completed its first two loans, with a cumulative value of over £330m. Précis Capital was advised on the partnership by Addleshaw Goddard, and on the transaction by Eversheds Sutherland, Dalbergia and the BNP Paribas valuation team.
Précis Capital, with funds and accounts managed by Carlyle’s Global Credit Segment and funds managed by global alternative asset manager Apollo Global Management partnered as senior lenders for a £251m five-year whole-loan facility to Moda Living for its Nine Elms Build to Rent scheme.
“We were pleased to work with two strong capital partners in Précis Capital and Carlyle to provide senior financing for Embassy Boulevard, which will be a welcome addition to Nine Elms. London Square and Moda Living are a well-respected team and we are happy to support their investment and development of the scheme. This is the second residential transaction Apollo has completed with Précis Capital and Carlyle and we look forward to working with them on additional transactions in the future.”Ben Eppley, Partner and Head of European Commercial Real Estate Debt at Apollo
The facility will be used to finance the development of the 467 home Nine Elms scheme in London, which includes 30 discounted market rent homes and 103 affordable rent homes to be managed by Paragon Asra Housing. The scheme is scheduled to be delivered in Q2 2025, with construction undertaken by London Square.
“The inaugural two loans extended through our partnership with Carlyle, both in collaboration with Apollo, demonstrate the kind of complex and large-scale financings we can provide to high-calibre borrowers. The combination of our highly experienced, specialist team and the leading global institutions who act as our capital partners enables us to swiftly and reliably deliver these kinds of financing solutions to sponsors and developers seeking to deliver best-in-class, sustainable living assets. The Moda Living project has a strong community focus, with extensive public realm amenity and both affordable and discounted rental units.”Randeesh Sandhu, CEO and co-founder of Précis Capital
The Nine Elms Build to Rent development is located across the road from the US Embassy in the heart of the vibrant Vauxhall Nine Elms Battersea neighbourhood. The scheme benefits from excellent transport links which have been boosted by the Northern Line extension which opened in September 2021. The new stations at Nine Elms and Battersea Power Station is within a 15-minute tube journey to Westminster, the City and Leicester Square. Nine Elms is also within walking distance of the Houses of Parliament and the South Bank.
The three-site development forms the last stages of the regeneration at the 14-acre site of the former Royal Mail delivery office and mail centre. It will also complete the last section of Nine Elms Park in the Vauxhall Nine Elms Battersea Opportunity Area, which spans over 560 acres and aims to provide 20,000 new homes. Nine Elms Park alone will deliver nearly 2,000 homes, a primary school and retail and commercial spaces.
“We are delighted to be working with Précis Capital and Carlyle on this world-class masterplan in the iconic Nine Elms neighbourhood. This will be our first development in London, and the site alongside the new US Embassy in such a landmark regeneration area is the perfect place for our flagship scheme. With our core brand proposition focused on unparalleled customer service, resident wellbeing, technology, community and ESG we aim to attract a broad demographic of members from across the capital and beyond.”Johnny Caddick, Chief Executive at Moda Living
The partnership between Précis Capital and Carlyle will finance development loans in the residential asset class, where the acute long-term structural undersupply within the UK’s housing market continues to present compelling investment opportunities.
Précis Capital supports Carlyle Global Credit’s investments in residential housing – which since 2019, have invested over $1bn in 15 different new residential developments, including the financing of this Build to Rent development in Embassy Boulevard.
“We are delighted to partner with Précis Capital to invest in the Embassy Boulevard development, a high-quality asset well situated in the heart of London. Leveraging our extensive global and regional insights, and investing experience of Carlyle’s global credit platform, we look forward to identifying further opportunities in the growing UK residential development financing market together with Précis Capital.”Taj Sidhu, Head of Carlyle’s European Credit Opportunities advisory team