Property company will allocate £900m of debt funding to housing schemes over four years
Grosvenor has announced a slate of new debt transactions to finance three major residential schemes across the country.
The deals made by the the development and investment firm, which is owned by the Duke of Westminster, one of the UK’s richest people, are worth a total £46m in value.
They are part of a wider ten-year portfolio of debt-funded regional funding worth a combined £900m, which was launched in April 2023.
The allocations comprise a £30m loan to support McAleer and Rushe build out a 409-unit student development in Nottingham, known as ‘The Place’ and three land bridge loans to McLaren Property totalling £16m to fund new student schemes in Nottingham and Leeds and a build-to-rent job in Leeds.
It builds on a £100m debt funding partnership recently agreed between and Generali Real Estate, the investment arm of Italian insurer Generali.
Announced in January, that joint venture began with a £17m loans supporting Aitch Group to develop a 65-home build for sale scheme near Canary Wharf.
Rachel Dickie, executive director of investment, 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.
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“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.”
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