QuadReal Property Group has taken a stake in U.K. real estate development loan company Precis Capital Partners and has also committed up to £1 billion ($1.2 billion) to Precis Capital to invest in development loans, said a soon-to-be released joint news release.
Private equity firm TowerBrook Capital Partners, Precis Capital's initial institutional owner, has retained a "significant shareholding," the news release said. TowerBrook executives declined to comment beyond the release.
QuadReal executives said the firm's stake is "a material enough investment to create alignment amongst all shareholders," said Dido Laurimore, a QuadReal spokeswoman in an email.
James Davey, a Precis Capital spokesman, in an email, declined to provide the size of TowerBrook and QuadReal's stakes in Precis Capital, which is changing its name to Precede Capital Partners. The transaction closed in the fourth quarter, Mr. Davey said.
Since its launch in March 2021, Precede Capital (then Precis Capital) has originated and arranged loans totaling £1.5 billion to finance the construction of residential properties in the U.K., alongside co-lenders that include Carlyle Group, Apollo Global Management and Nomura, Mr. Davey said.
"The living sector is one of the key pillars within our global areas of conviction," said Jay Kwan, managing director, head of Europe for QuadReal, in the release.
Specifically, the investment "fulfills a key performance objective to invest within the debt market on a timely and geographically focused basis," Ms. Laurimore said. "We are extending the breadth and depth of our lending relationships in Canada and the U.S. with focus now on the U.K., too."
QuadReal is the real estate investment management unit of the C$211.1 billion ($155.8 billion) British Columbia Investment Management Corp., Victoria, which manages British Columbia's public pension and other assets. QuadReal has C$67.1 billion in assets under management.
TowerBrook has raised $21.1 billion in capital since its inception in 2001.