Précis Capital Partners and QuadReal announce £1 billion partnership
Précis Capital Partners (“Précis Capital”), the real estate development lending platform, and global real estate investor QuadReal Property Group (“QuadReal”) announce today that QuadReal has acquired an interest in Précis Capital and will commit up to £1 billion to deploy into its development loans. TowerBrook, Précis Capital’s founding institutional shareholder, retains a significant shareholding. Précis Capital is concurrently rebranding as Precede Capital Partners (“Precede Capital”).
Since its launch in March 2021, Precede Capital (then Précis Capital) has originated and arranged loans totalling £1.5 billion to finance the construction of residential properties in the UK. This new partnership with QuadReal will further enhance the opportunity to provide whole loan financing solutions. With the new investment, Precede Capital expects to arrange an additional £3 billion+ of loans through capital structuring via syndication and leverage.
QuadReal Property Group is a global real estate investment, operating and development company headquartered in Vancouver, British Columbia. Its assets under management total CAN$67.1 billion, of which CAN$10 billion are real estate debt assets. The team seeks to deliver strong investment returns while creating sustainable environments that bring value to the people and communities it serves, closely aligning with Precede Capital and TowerBrook’s focus on responsible investment and their respective ESG strategies. QuadReal’s discerning approach to funding structures and development risk and its experience – including the management and development of over 60,000 residential suites globally – complement Precede Capital’s growth ambitions.
Randeesh Sandhu, CEO and co-founder of Precede Capital, said: “We are delighted to partner with QuadReal as we enter the next stage of our evolution as a reliable financing partner to high-calibre borrowers. 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. We look forward to working closely with QuadReal as we continue to back sponsors and developers delivering best-in-class living assets.”
Jay Kwan, Managing Director, Head of Europe for QuadReal, said: “The living sector is one of the key pillars within our global areas of conviction. Partnering with the deep bench of seasoned professionals at Precede Capital in this area, at this time, is a natural extension of both investment priorities and advancing our real estate credit business to the UK from within North America. Working closely with the TowerBrook team and its best-in-class fiduciaries only enhances what this group of professionals can offer and achieve.”
Joseph Knoll, Managing Director at TowerBrook, said: “Since its launch, Precede Capital has established itself as a significant provider of development lending in the UK. The new partnership with QuadReal and its extensive experience as a real estate manager and credit provider will accelerate that journey. We are excited about partnering with QuadReal and the new growth opportunities it will open for the Precede platform.”
Precede Capital was advised on the transaction by Greenburg Traurig and JLL Corporate Finance. QuadReal was advised by K&E, Deloitte and Mourant Ozannes. TowerBrook was advised by Goodwin Proctor and PwC.
About Precede Capital Partners
Precede Capital Partners (formerly Précis Capital Partners) is a UK-based lending platform that partners with best-in-class developers, real estate sponsors, banks and institutional investors to provide bespoke debt financing solutions for large-scale real estate projects. Established in 2021, Precede Capital is backed by TowerBrook Capital Partners, and QuadReal Property Group. Precede Capital provides finance for large-scale real estate projects across the UK. Funding a range of living assets, from residential for sale or rent, to student accommodation and later living. Precede Capital provide whole loans and whole Green Loans competitively priced, with flexible structuring and leverage.
About QuadReal Property Group
QuadReal is a global real estate investment, operating and development company headquartered in Vancouver, British Columbia. Its assets under management total CAN$67.1 billion. From its foundation in Canada as a full-service real estate operating company, QuadReal has expanded its capabilities to invest in equity and debt in both the public and private markets. QuadReal invests directly, via programmatic partnerships and through operating companies in which it holds an ownership interest.
QuadReal seeks to deliver strong investment returns while creating sustainable environments that bring value to the people and communities it serves. Now and for generations to come.
QuadReal: Excellence lives here.
About TowerBrook Capital Partners
TowerBrook is a purpose-driven, transatlantic investment firm that works to grow and improve large and middle-market businesses by partnering with management teams and employees to build excellent companies that make a positive impact on society. Since inception in 2001, TowerBrook has raised a total of $21.1 billion and invested in 90 companies on both sides of the Atlantic. TowerBrook operates as a single, unified team of experienced investment professionals focused on unlocking value in complex situations. The firm’s highly synergistic family of funds make control and non-control investments across the capital structure, providing capital and resources to transform the capabilities and prospects of its portfolio companies.
As a disciplined investor with a commitment to fundamental value, TowerBrook seeks to deliver superior, risk-adjusted returns to investors on a consistent and responsible basis. TowerBrook is the first mainstream private equity firm to be certified as a B Corporation. B Corporation certification is administered by the non-profit B Lab organisation and is awarded to companies that demonstrate leadership in their commitment to environmental, social and governance (ESG) standards and responsible business practices.
For more information, please visit www.towerbrook.com
For Precede Capital Partners:
James Davey/Dan Thomas
+44 (0)7940 153 194
Dido Laurimore/Giles Barrie
+44 (0)2037 271 000
+44 (0)2074 045 959