Offsite specialist Tide Construction is set to build a 32-storey build-to-rent (BTR) tower in Acton.
The firm will be both the developer and contractor for the scheme, called The Castle. The tower will feature 462 flats as well as a roof terrace, cinema, library, gym, co-working space and dining rooms.
Forward funding for the project worth £105.2m has been provided by a BTR joint venture (JV) between BlackRock and Outpost Management, which will own and operate the new property.
The duo have borrowed the money via a three-year loan facility from real estate development lending platform Precede Capital Partners and real estate investment company QuadReal Property Group.
Tide will build the tower using offsite construction methods, which will involve delivering fitted volumetric units to the site using its volumetric technology system Vision. Tide said the modular build will allow “certainty and savings” and make the project “less susceptible to external challenges and delays”.
The project, designed by HTA Design, is targeting a BREEAM Excellent rating and an EPC of A or B. It is scheduled for completion in August 2025.
Loan facilities are being used more frequently to drive construction projects, with firms including Royal Bam and Mace among those who have used loans to push their projects forward.
Tide Construction chief executive Christy Hayes said: “This partnership with global investors Precede Capital and QuadReal, secured to close The Castle JV with Outpost and BlackRock, testifies to our compelling offer.
“This deal demonstrates the level of quality, sustainability and sophistication that Tide and Vision’s volumetric technology can deliver, supporting the much-needed provision of housing to the UK.”
Precede Capital chief credit officer David Jerrard said: “This financing underpins our core commitments to address growing demand for build-to-rent assets in London and invest in high-quality sustainable assets, underscoring our ability to finance high-calibre developments across the UK.”
BTR has been a profitable area for construction and development companies for years, with firms including Watkin Jones focusing much of their efforts on the sector. But there is increasing concern that reform is needed to ensure BTR schemes remain viable.
Last month, Mace chief executive Mark Reynolds, who is co-chair of the Construction Leadership Council (CLC), called on chancellor Jeremy Hunt to reform Stamp Duty Land Tax so that it does not “disproportionately impact” the viability of BTR schemes.
