Goldman Sachs-backed Riverstone Living has agreed a £219m loan from Cheyne Capital to finance its 190-home luxury retirement housing development in Kensington, W14.
The loan is the biggest single-asset debt deal for the UK’s later living sector and is the second Cheyne has handed Riverstone in as many years. Last year, Cheyne provided a £99m facility to Riverstone for its Fulham Riverside scheme, which is due to open in the coming months.
Cheyne’s Filippo Alessandria said the funding was “testament to our confidence in their ability to source great London locations for their best-in-class later living schemes”.
“We are also particularly supportive of Riverstone’s sustainability plans, in terms of both the environment and local community engagement, and, to reflect this, have agreed ESG-related ratchets in our loan terms.”
Riverstone is currently developing three major sites in London, in Fulham, Kensington and Hampstead Heath, and has a near-term pipeline of several further sites.
The Kensington scheme opens later this year and comprises two buildings at Royal Warwick Square. The flats range in price from £1.1m to £3m.
The residence is touted as having the feel of a members’ club, with facilities including a spa, pool, restaurant, cinema and concierge services.
Simon Loveridge, Riverstone’s chief financial officer, said: “Securing further finance from Cheyne Capital for our Kensington residence reinforces the appeal of the Riverstone offering and our plans to deliver a platform of scale in prime London locations.
“We are focused on delivering residences that are at the forefront of sustainable innovation and are committed to working with the local communities we operate in.
“The model, which has seen great success internationally, is set to experience further demand over the coming years in the UK as its over-65s population continues to grow. Riverstone’s proposition is ideally placed to meet increasing demand.”
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