Precede Capital and QuadReal Property Group provide £105m financing for modular BTR development

The loan will be used to fund the acquisition and development of a multifamily BTR building in North Acton, London, from offsite specialist Tide Construction — Tide will act as developer and contractor of the scheme, with the development scheduled for completion in August 2025.

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.

The scheme will comprise 462 self-contained studio units in a 32-storey building, with amenities including a roof terrace, cinema, library, gym, co-working space and dining rooms — the financing represents Precede Capital’s inaugural development loan for a modular construction project.

David Jerrard, chief credit officer at Precede Capital, said: “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 BTR assets in London and invest in high-quality sustainable assets, underscoring our ability to finance high-calibre developments across the UK.”

Kristian Branum-Burns, senior vice-president of international real estate in Europe, at QuadReal added: “The living sector continues to be a key conviction of QuadReal’s global investment strategy.”

“We are excited to be working alongside BlackRock and Outpost on our first Green Loan in partnership with Precede.”