Lone Star’s Quintain has completed one of the largest development financing deals this cycle, bringing in £800m of fresh debt to build out its Wembley project.
It has agreed a five-year revolving facility with three North American financiers. Insurer AIG and Wells Fargo have together provided a senior loan or around £550m, with AIG providing the slight majority. Canada Pension Plan Investment Board has provided a junior loan of around £250m.
UK and Irish banks are understood to have shied away from the deal given the huge scale of the development and uncertainty brought about by broader macro-economic and political decisions. The sheer scale of the deal will still be seen as a boon for the financing market and a stamp of approval from lenders of the PRS market and the project.
The finance replaces a £425m bridge loan from Wells Fargo which was used to buy Quintain by Lone Star in a £745m take private deal in October last year.
The latest deal will see 5,500 homes built at the Wembley Park project.
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