The Children’s Investment Fund has made its first significant development loan in central London, putting £400m into Almacantar’s Marble Arch Place.
The loan will finance the circa £540m development of the residential tower near Hyde Park Corner, W1.
The UK hedge fund, run by Sir Chris Hohn, has previously backed the development of mixed-use schemes in New York, including a $850m development loan on the 15 Hudson Yards scheme. Previous investments made early in the cycle have delivered significant returns for the fund and its clients. At the end of 2015, it delivered returns of 14%, far exceeding many of its peers.
The speculative development will deliver 54 flats across 18 floors and will require the demolition of a building Almacantar paid £80m for in 2011.
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