Cain International
London, 27 July 2023 – Cain International (‘Cain’), the privately held investment firm, and controlled affiliates of Starwood Capital Group (‘Starwood Capital’), a global private investment firm, have agreed a £535 million loan to Canary Wharf Group (‘CWG’) for the next phase of development of its Wood Wharf residential scheme.
Cain and Starwood Capital will each provide half of the £535M development loan, one of the largest in the U.K. in the past 12 months.
Part of the wider Canary Wharf estate, Wood Wharf Phase 3 is a 1,308-home private build-to-rent (BTR) scheme, split across three towers and two buildings, alongside c. 26,300 sq ft NIA (Net Internal Area) of ancillary commercial space. This phase, which includes 295 affordable homes, adds to the attractions of the mixed-use neighbourhood in Wood Wharf with its easy access to green spaces and waterside living.
The scheme is a pivotal part of CWG’s repositioning to offer 24/7 living, working, shopping and leisure. Wood Wharf is expected to consist of over 3,600 new homes in addition to over nine acres of public spaces, a GP surgery and a school. Its estimated completion is in phases from end of 2025 to Q1 2027.
Graham Keable, Managing Director – Real Estate Debt at Cain International, said: “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 U.K. capital’s most dynamic neighbourhoods.”
Harvey Sandhu, Vice President, Real Estate Debt, 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.”
Becky Worthington, CFO, 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.”
As part of this transaction the asset is being transferred at full market value up the group structure out of the bond group, so reducing development risk within Canary Wharf Group Investment Holdings plc. For further detail please see here.
Wood Wharf Phase 3 will be delivered with a target Level 4 Code for Sustainable Homes across the private market properties, and BREEAM Excellent on the commercial space.
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