Grosvenor Property UK is boosting its residential debt strategy with a target of lending £900m over the next decade.
The company initially allocated £120m to support housing delivery in April 2023. It said the new target would be met through new funding and recycling capital from existing and future lending.
Its latest deals include a £30m loan to support McAleer and Rushe to build out The Place, a 409-unit student accommodation scheme in Nottingham, as well as three land bridge loans to McLaren Property totalling £16m to fund PBSA projects in Nottingham and Leeds, and a build-to-rent scheme in Leeds.
Along with loans to DWS, Urban Splash, Aitch Group and a tie-up with Generali Real Estate, Grosvenor is supporting the delivery more than 1,800 homes.
Rachel Dickie, executive director of investment, said: “In our first year we have 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 with 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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