Grosvenor has made £46m (€53.7m) in new UK residential debt transactions and plans to deploy £900m in the sector over the next 10 years.
Grosvenor said its UK property business is expanding its residential debt strategy with a plan to allocate the capital into debt funding to ”support housing delivery, comprised of new funding and recycling capital from existing and future lending”.
The debt strategy, which was launched in April 2023, has made new transactions comprising a £30m loan to support McAleer and Rushe to build out the 409-unit The Place purpose-built student accommodation (PBSA) scheme in Nottingham and three land bridge loans to McLaren Property worth £16m to fund new PBSA projects in Nottingham and Leeds and a build-to-rent scheme in Leeds.
The new transactions build on Grosvenor’s recent £100m residential debt funding partnership with Generali Real Estate. Combined with transactions to date with DWS, Urban Splash, Aitch Group and the Generali Real Estate partnership, Grosvenor said it is currently supporting the delivery over 1,800 homes across a range of tenures.
Rachel Dickie, executive director of investment at 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 like minded partners, using our expertise to improve social and environmental outcomes and the delivery of new homes.”
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