Grosvenor launches £120m residential debt strategy

Grosvenor has launched a new £120m debt strategy led by the investment team in its UK property business to finance residential developments. The property group said the strategy will further diversify its £800m regional investment portfolio, by financing projects across a broad range of residential tenures. Its first transaction, a senior loan facility of c£33m to DWS Group, is supporting the delivery of 316 homes to rent in Bath. Grosvenor is also expanding its regional presence, which includes the 42-acre Liverpool ONE retail and entertainment destination and a growing regional office portfolio. Grosvenor will make funding available to developers bringing forward a range of residential-led projects, including market sale, build to rent, affordable housing, student housing and senior living, providing loans up to £30m per transaction. In line with Grosvenor’s commitments, it outlined that funding will support projects with strong social and sustainability credentials. DWS’ Bath Junction project is targeting Home Quality Mark 3 for the residential elements and a third of the homes will be for affordable rent. Residents will also be encouraged to cycle with over 650 secure bike parking spaces for residents and visitors provided, along with a car club and electric charging points for the parking spaces available. The terms of the loan have not been disclosed. Rachel Dickie, executive director, Investment, Grosvenor Property UK said: “Despite economic uncertainty and interest rate rises, we believe the housing market continues to be underpinned by a significant under-supply. Through our debt strategy we are bringing together our capital and expertise to back high-quality projects like Bath Junction, that meet housing need and can demonstrate strong sustainability credentials.” Andrew Antoniades, head of Lending, CBRE, added: “We are delighted to be working with Grosvenor whose reputation and development expertise is market leading, providing a superb foundation to lend into this market.” Grosvenor is working in partnership with the CBRE Investment Advisory Lending team which works to originate, structure and execute loans for the lending strategy.

Grosvenor launches £120m residential debt strategy

Read Next

Watling Real Estate launches in the UK following management buyout

Watkin Jones forward funds Loft Lines BTR scheme

Purplebricks shareholders back sale to rival Strike

Border to Coast appoints Abrdn to support its UK real estate fund

Lincolnshire Co-op and Wykeland acquire Waterside Shopping Centre

Watling Real Estate launches in the UK following management buyout

Watkin Jones forward funds Loft Lines BTR scheme

Purplebricks shareholders back sale to rival Strike

Border to Coast appoints Abrdn to support its UK real estate fund

Lincolnshire Co-op and Wykeland acquire Waterside Shopping Centre

Andrew Stoneman: ‘developers need financial certainty’

Warehouse REIT swings to £183m loss amid drop in portfolio value

Redrow launches 81 new houses in Harbour Views, Havant

OneMedical Property secures £30m backing from OakNorth Bank

Watling Real Estate launches in the UK following management buyout

Read Next

Watling Real Estate launches in the UK following management buyout

Watkin Jones forward funds Loft Lines BTR scheme

Purplebricks shareholders back sale to rival Strike

Border to Coast appoints Abrdn to support its UK real estate fund

Lincolnshire Co-op and Wykeland acquire Waterside Shopping Centre

Related Articles

Andrew Stoneman: ‘developers need financial certainty’

Warehouse REIT swings to £183m loss amid drop in portfolio value

Redrow launches 81 new houses in Harbour Views, Havant

OneMedical Property secures £30m backing from OakNorth Bank

Watling Real Estate launches in the UK following management buyout