25 MARCH 2024
Grosvenor Property UK has today announced a significant expansion of its residential debt strategy, building on the success of its initial £120m allocation. Over the next ten years, Grosvenor will look to allocate £900m of debt funding to support housing delivery, comprised of new funding and recycling capital from existing and future lending.
Launched in April 2023, Grosvenor’s residential debt strategy is part of a wider £900m regional investment portfolio, which also comprises retail and entertainment destination Liverpool ONE and c500,000 sq. ft of office space in the UK’s key cities.
The three new transactions, totalling £46m, comprise a £30m loan to support McAleer and Rushe to build out ‘The Place’ a 409-unit Purpose-Built Student Accommodation (PBSA) scheme in Nottingham, and three land bridge loans to McLaren Property totalling £16m to fund new PBSA projects in Nottingham and Leeds and a Build to Rent scheme in Leeds.
Combined with transactions to date with DWS, Urban Splash, Aitch Group and Grosvenor’s recent lending partnership with Generali Real Estate, Grosvenor is supporting the delivery over 1,800 homes across a range of tenures.
Rachel Dickie, Executive Director of Investment, Grosvenor said:
“In our first year we’ve lent to some of the country’s most established developers, formed a partnership with one of the world’s largest insurance companies and are seeing a growing demand for funding from investors seeking to get exposure to the UK living sector.”
“Increasing our allocation reflects the confidence we have in our pipeline, the strong fundamentals in the living sector and the continued caution from traditional lenders.”
“As a developer in our own right and the institutional knowledge gained from our long-established lending business in America, our ambition is to work with likeminded partners, using our expertise to improve social and environmental outcomes and the delivery of new homes.”
About Grosvenor
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Grosvenor is an international organisation whose activities span urban property, food and agtech, rural estate management and support for philanthropic initiatives.
We are a values-led business which represents the Grosvenor family and share a common purpose - to deliver lasting commercial, social and environmental benefit - addressing today’s needs while taking responsibility for those of future generations.
With a track record of over 340 years, we work to improve urban property and places in many of the world’s leading cities, promoting sustainability within the built environment and enhancing the wellbeing of customers and communities.
Our UK property business supports c1,000 businesses and tens of thousands of residents and workers across London’s West End each day. We also invest in, create and manage sustainable neighbourhoods in Liverpool and across England. As a 1.5oC aligned company, pioneering change and new ways of thinking about property we aim to ensure our places benefit both people and the planet over the long term.