Quintain has secured a £755m preferred equity commitment for its Wembley Park development from funds managed by Ares Management’s Alternative Credit strategy and Lone Star.
Funds managed by Lone Star, which owns Quintain, will contribute £337m to the deal.
The developer has completed more than 5,000 homes and invested £2.8bn in Wembley Park so far. The masterplan across the 85-acre site will ultimately bring 8,500 homes, of which 6,044 will be build to rent.
It has approximately 2,500 more homes planned for the area, as well as local shops, cafés and restaurants overlooking the new seven-acre Union Park.
Ares and Lone Star’s deal follows a £780m refinancing corporate facility and infrastructure loan provided to Quintain from JP Morgan and Cheyne Capital.
James Saunders, chief executive of Quintain, said: “Quintain is delighted to have Ares’ backing as a new partner, whilst maintaining our longstanding partnership with Lone Star, to continue to develop the world-class Wembley Park estate which already is home to the largest multifamily/BTR community in the UK.”
James Riddell, co-head of European Real Estate at Lone Star, said: “This is a significant next step in the evolution of Quintain’s development of Wembley Park under Lone Star’s ownership. Wembley Park is one of the largest build-to-rent schemes in the UK and a great example of ambitious placemaking.”
Joel Holsinger, partner and co-head of Ares Alternative Credit, added: “Our team is an established leader in providing bespoke and creative capital solutions to asset-focused investment opportunities.
“We believe our scale, coupled with our flexible mandate, makes Ares an ideal partner for private equity sponsors, as they seek to grow and optimise the balance sheets of their highest quality assets. We are delighted to be partnering with Lone Star in this landmark transaction for the UK market.”
Image © Haworth Tompkins
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