Wood Wharf

Cain International and Starwood Capital Group have agreed to provide a £535 million loan to Canary Wharf Group for the next phase of development in its Wood Wharf residential scheme.

One of the largest loans in the UK in the past year, it will be split equally between Cain and Starwood Capital.

The Wood Wharf Phase 3 includes three towers and two buildings, comprising a total of 1,308 private Build-to-Rent homes, along with approximately 26,300 sq ft of commercial space. 295 of these homes will be designated as affordable housing.

Wood Wharf is part of Canary Wharf's broader transformation into a mixed-use neighbourhood that offers 24/7 living, working, shopping, and leisure facilities.

The overall Wood Wharf development is expected to include more than 3,600 new homes, extensive public spaces, a GP surgery, and a school, with an estimated completion timeline spanning from the end of 2025 to Q1 2027.

Graham Keable, Managing Director – Real Estate Debt at Cain International, commented: “This was an opportunity to deepen an existing relationship with an experienced sponsor while increasing our exposure to a market sector where we have comprehensive experience. Canary Wharf is a proven location for BTR schemes, with premium rental values, growing occupancy levels and substantial investment appetite despite market headwinds, and we look forward to supporting Canary Wharf Group in its ambition to deliver best-in-class homes in one of the UK capital’s most dynamic neighbourhoods.”

Harvey Sandhu, Vice President, Real Estate Debt, Starwood Capital, addded: “We are delighted to support Canary Wharf Group in this transaction. In recent years, Canary Wharf has become a vibrant, mixed-use destination and Wood Wharf Phase 3 will further enhance this transition. The financing builds on our strategy of supporting best-in-class sponsors in sectors with strong market fundamentals.” 

Becky Worthington, CFO of Canary Wharf Group, added: “This financing agreement is a testament to the success of our residential offering at CWG and the strength of our lender relationships. We have more than 3,500 residents living at Canary Wharf today in award-winning buildings, with access to world-class amenities on the estate as well as incredible transport links.”

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

Phase 3 of Wood Wharf will be delivered with a target Level 4 Code for Sustainable Homes across the private market properties, and BREEAM Excellent on the commercial space.