Almacantar has sealed a landmark £400m speculative development loan for its redevelopment of Marble Arch Tower next to Hyde Park.
In one of the largest loans this cycle for a project with no pre-sales or pre-lets, The Children’s Investment Fund (TCI) is backing the developer.
The loan will help fund the Marble Arch scheme, as well as the redevelopment of 466-490 Edgware Road, which is where the affordable housing element of the project will be provided.
The whole project, which involves a mix of offices, flats and retail, is expected to cost about £600m.
TCI is a London-based hedge fund run by Christopher Hohnm which is affiliated with a charity for children in developing countries run by his ex-wife.
Although it has done little to date in UK real estate finance, it is well known in the US for providing big development loans on high profile projects.
For example, last year it provided a $850m loan to Related Cos for its development of the 70-storey tower at 15 Hudson Yards, in New York.
Almacantar is expected to start on site shortly having already been granted planning permission for revised plans for Marble Arch Tower, which included more office space and slightly less residential, last year.
The existing tower will be knocked down and replaced by a residential building with 54 flats and an office building, with ground floor retail and an Odeon cinema.
At 466-490 Edgware Road, there will be 76 homes, of which 47 will be affordable, and a disused petrol station will be brought back into use.