10 January 2022: Get Living, the UK’s leading build-to-rent operator of large-scale neighbourhoods, has secured a £365m development loan from controlled affiliates of Starwood Capital Group (“Starwood Capital”), which represents one of the UK’s biggest development loans in the past year, to fund the redevelopment of the former Elephant & Castle Shopping Centre.
The loan facility with Starwood Capital, which is being funded by Starwood Property Trust (NYSE: STWD) and Starwood European Real Estate Debt Finance I Limited, has a 5-year term and enables the second phase of the wider transformation of Elephant & Castle town centre.
Elephant & Castle town centre is one of London’s most significant redevelopment projects, which will deliver a transformed environment for residents, shoppers, and retailers. The former shopping centre site will see 485 homes delivered to rent (313 market rent and 172 affordable rent) alongside 135,000 sq ft of shops, restaurants and leisure space, 55,000 sq ft of workspace, a new university campus for London College of Communication, UAL and a new Tube station entrance and ticket hall, plus a high-quality public realm.
The first phase, Elephant Central on Elephant Road, was completed in 2017 and is owned and managed by Get Living. The third and final phase will commence on UAL’s existing London College of Communication site following their move into their new campus. This phase will provide a further 498 new homes (333 market rent, 49 affordable rent and 116 social rent) as well as a 500-person capacity cultural venue.
The development loan from Starwood Capital comes alongside the appointment of construction partner Multiplex to deliver the Allies & Morrison-designed scheme, which is due to complete in early 2026.
Rick de Blaby, CEO of Get Living commented: “This marks a significant moment in the journey to deliver a thriving new town centre for Elephant & Castle and the local community. After extensive consultation and planning activity, construction will now start on the major redevelopment of Elephant & Castle town centre, incorporating much needed new homes, restaurants, shops, a university, workspace, leisure and cultural facilities, transport infrastructure and acres of new public realm.
“To secure this deal with a top tier lender like Starwood Capital is a fantastic endorsement for both Get Living and the transformation of Elephant & Castle. We look forward to building our relationship with Starwood Capital over the coming years as we deliver one of London’s most significant redevelopment projects.”
