Precis Capital deal to spark £1bn of UK resi development loans

Canadian real estate investor Quadreal has bought a stake in UK housing development finance specialist Precis Capital Partners in a deal that will see the firm lend £1bn into UK housing projects.

Precis, which has rebranded as Precede Capital Partners as part of the agreement, has previously been involved in financing £1.5bn of loans to UK housing schemes, including the One Nine Elms development in London. It is also a backer of build to rent developer Moda’s 467-home Nine Elms scheme (pictured, left).

Precede, which itself was established only in 2021, said the commitment to advance £1bn of loans by Quadreal to the UK residential sector meant that it expected to be able to leverage this funding to arrange an additional £3bn of loans for UK development projects overall.

It said Vancouver-based Quadreal had bought a proportion of its business for an undisclosed sum, with the company’s original founding shareholder, Towerbrook, retaining a significant shareholding. Quadreal claims $67.1bn of assets under management, with $10bn of these loans to property development.

Randeesh Sandhu, CEO and co-founder of Precede Capital, said he was “delighted” to partner with QuadReal. He said: “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.”