Cain International and Starwood Capital Group, both prominent investment firms, have entered into a £535 million loan agreement with Canary Wharf Group to fuel the upcoming phase of the Wood Wharf residential project. Each firm is set to provide half of the loan, making it one of the most significant development loans issued in the UK in the last year.

The funds will be used for the construction of the Wood Wharf Phase 3 project, which is part of the broader Canary Wharf estate. The project includes the development of 1,308 homes, distributed across three towers and two buildings, in addition to approximately 26,300 sq ft of ancillary commercial space. The development plan also outlines the inclusion of 295 affordable homes.

Canary Wharf Group’s CFO, Becky Worthington, praised the deal as an affirmation of the success of their residential offering and the robust relationships with their lenders. “We currently have over 3,500 residents at Canary Wharf living in award-winning buildings, with world-class amenities and excellent transport links,” she stated.

The development of the Wood Wharf Phase 3, which aims to achieve a Level 4 Code for Sustainable Homes across the private market properties and BREEAM Excellent on the commercial space, is expected to conclude between the end of 2025 and Q1 2027. Upon completion, the Wood Wharf neighbourhood is set to contain over 3,600 homes, a school, a GP surgery, and more than nine acres of public spaces.

Graham Keable, Managing Director of Real Estate Debt at Cain International, saw the deal as an opportunity to expand their existing relationship and increase their exposure to a market where they have extensive experience. Meanwhile, Harvey Sandhu, Vice President of Real Estate Debt at Starwood Capital, expressed delight at supporting Canary Wharf Group’s ongoing development of a vibrant, mixed-use destination.

As part of this transaction, the asset is being transferred up the group structure at full market value, reducing the development risk within Canary Wharf Group Investment Holdings plc.