Canary Wharf Group has secured a £535m development loan from Cain International and Starwood Capital Group for the next phase of its Wood Wharf residential scheme.
Cain and Starwood will each provide half of the £535m development loan, which is one of the largest in the UK in the past 12 months.
Phase 3 of Wood Wharf will provide 1,308 build-to-rent (BTR) homes – 295 of which will be affordable – split across three towers and two buildings, in addition to circa 26,300 sq ft of commercial space.
Becky Worthington, CFO of Canary Wharf Group, said: “This financing agreement is testament to the success of our residential offering at CWG and the strength of our lender relationships. We have more than 3,500 residents living at Canary Wharf today in award-winning buildings, with access to world-class amenities on the estate as well as incredible transport links.”
Graham Keable, managing director – real estate debt at Cain International, added: “This was an opportunity to deepen an existing relationship with an experienced sponsor while increasing our exposure to a market sector where we have comprehensive experience.
“Canary Wharf is a proven location for BTR schemes, with premium rental values, growing occupancy levels and substantial investment appetite despite market headwinds, and we look forward to supporting Canary Wharf Group in its ambition to deliver best-in-class homes in one of the UK capital’s most dynamic neighbourhoods.”
Harvey Sandhu, vice president, real estate debt, at Starwood Capital, said: “We are delighted to support Canary Wharf Group in this transaction. In recent years, Canary Wharf has become a vibrant, mixed-use destination and Wood Wharf Phase 3 will further enhance this transition. The financing builds on our strategy of supporting best-in-class sponsors in sectors with strong market fundamentals.”
