Lodha UK has raised £290 million as construction funding for the Lincoln Square development from the private investment company Cain Hoy.
It is one of the largest ever loans from a single provider for a UK residential project.
The development is currently under construction and is expected to be completed in the last quarter of 2018. The project has been one of the star performers of the London residential market with over 78 units worth almost £130 million sold since its launch in May 2016. Construction is being carried out by Multiplex, the construction arm of global investment major, Brookfield.
The facility includes £80 million to replace the existing debt, provided by Cain Hoy last autumn, and the balance will be used to complete the project over the next two years.
Ab Shome, Finance Director at Lodha UK, commented: “We are extremely pleased to have completed our first development funding in the UK which showcases the confidence of the market in the Lodha UK platform. We received competitive offers from three consortiums, and are thankful to all three providers for their interest. This is an exciting development and we are pleased to partner with Cain Hoy, whose ability to provide flexible solutions and perform within our timescale has been invaluable. We look forward to building Central London’s most prestigious residential project at Lincoln Square.”
Matteo Milan, Director of Cain Hoy, added: “Having already supported Lodha UK through an initial financing to enable the start of construction on site, we are pleased to continue our relationship with the Lodha team by providing this significant loan. Lincoln Square is an exceptional project where sales are performing well and this financing highlights our confidence in Lodha and the London market, as well as our ability to write large bilateral loans.”
Alex Carr, Residential Development Partner at Knight Frank, said: “The success at Lincoln Square is demonstrative of the work Lodha UK has done in bringing together a world class team, and creating a scheme that will redefine this special niche of London. The collaborative effort of the interior designers, architects and development managers has created an enviable scheme, with a superb luxury finish and world class amenities.
“As a result, the development has been selling very well, continuing to perform despite today’s slightly tougher market dynamics. Buyers have become increasingly discerning and product led, yet are keen to buy into developments such as Lincoln Square, as they are seen as best in class and present real value.”