Grosvenor taps into private debt boom with £900m lending strategy
Grosvenor, the Duke of Westminster’s property business, is planning to deploy an additional £900m through its residential debt strategy in the UK over the next decade.
The “significant expansion” of that part of its business follows an initial £120m allocation, which included its recent £100m partnership with Generali Real Estate. Its lending has funded the construction of 1,800 homes to date.
Grosvenor said that the additional debt funding will be used to support housing delivery, comprised of new funding and recycling capital from existing and future lending.
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The property firm unveiled three new transactions, totalling £46m, as part of the expansion, which will be used to fund student accommodation in Nottingham and Leeds, and a build-to-rent scheme in Leeds.
“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,” said Rachel Dickie, executive director of investment at Grosvenor.
“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.
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“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.”
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 around 500,000 square feet of office space across the UK.
