Introducing our new partner: QuadReal Property Group

We’re pleased to get 2023 underway with the news that we are joining forces with QuadReal Property Group , the Vancouver-headquartered global real estate investor, in a ￡1bn Partnership. This will see us work together on backing sponsors and developers delivering best in-class living assets across the UK.

As well as being a funding partner, QuadReal will also become shareholder in our platform, working alongside our founding institutional shareholder, TowerBrook Capital Partners L.P. , who are retaining a significant interest in the business. We’re also rebranding to Precede Capital Partners with immediate effect. Our COO, Daljit, has written more about this change here.

Since first launching in March 2021, we’ve built an exceptionally talented specialist team and a deserved reputation for successfully structuring large and complex financial solutions. So far, we’ve originated and arranged loans totaling ￡1.5bn, and this new partnership will bolster this exceptionally strong track record.

In QuadReal, we have a vastly experienced partner with over $10bn in real estate debt assets. The firm’s considered approach to funding structures and development risk, as well as its expertise – which includes the management and development of over 60,000 residential suites globally - complements our growth ambitions perfectly. Together, we expect to provide an additional ￡3bn+ in lending through capital structuring via syndication and leverage.

That being said, the significant economic headwinds are not expected to abate in 2023. These are without doubt some of the most difficult market conditions I’ve seen in a long time, and I’ve been in the industry for over two decades!

Despite the challenges, we firmly believe that there are significant opportunities for lenders backed with the kind of firepower offered by a partner like QuadReal. The UK housing market is no doubt in transition, and while house-buying is projected to slow down in the face of falling consumer spending power and rising mortgage rates, we believe that demand will be funneled into the increasingly institutionalised rental market instead. The UK’s housing stock is also going through a green transition, and both new and existing homes will need to meet enhanced environmental standards in line with the UK’s Net-Zero targets.

In the future, we hope to move into new lending products within other asset classes and in new geographies. Having a partner in QuadReal, with broad international experience in the EU, North America and Asia-Pacific within adjacent asset classes such as logistics and industrial, data centres, health care and life sciences will no doubt help us to springboard our growth within these new and exciting opportunity areas.

This environment offers a great opportunity for non-bank lenders like us, with the willingness and expertise to underwrite large and complex loans amid a turbulent macroeconomic backdrop.

We will continue to take a highly disciplined underwriting approach, founded on careful risk mitigation and portfolio construction.?

The newly formed relationship is an endorsement of this long-standing approach. We’re delighted to be working closely with the QuadReal team as we enter 2023 wholly focused on consolidating our position as a reliable financing partner to high-calibre borrowers with the most ambitious projects.