UK: Canary Wharf Group has secured a loan of £535 million from from Cain International and Starwood Capital for the next phase of development at Wood Wharf in London’s Docklands.
Cain and Starwood Capital will each provide half of the development loan, one of the largest in the UK in the past 12 months.
Part of the wider Canary Wharf estate, Wood Wharf Phase Three is a 1,308-home private BTR scheme, which will be delivered across three towers and two further buildings. The phase includes 295 affordable homes and 26,300 square feet of commercial space.
Wood Wharf is expected to include 3,600 homes in addition to nine acres of public spaces, a GP surgery and a school. Its estimated completion is in phases from end of 2025 to the first quarter of 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 Build to Rent 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 UK 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 at Canary Wharf Group, added: “This financing agreement is testament to the success of our residential offering at Canary Wharf Group 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.”
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.
Canary Wharf Group is owned jointly by Brookfield Property Partners and Qatar Investment Authority and develops, manages, and owns interests in approximately nine million square feet of mixed-use space and more than 1,100 BTR apartments, principally at its Docklands development.
