Grosvenor is embarking on a £120m residential development debt strategy to finance projects across a broad range of residential tenures.
The strategy will further diversify its £800m regional investment portfolio and will be led by Grosvenor’s investment team in its UK property business.
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 of up to £30m per transaction.
Its first transaction is a senior loan facility of £33m to DWS Group, which is supporting the delivery of 316 BTR homes in Bath.
Grosvenor is expanding its regional presence, which includes the 42-acre Liverpool ONE retail and entertainment destination and a growing regional office portfolio.
Rachel Dickie, executive director of investment at 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.”
Grosvenor is working in partnership with CBRE’s investment advisory lending team, which will originate, structure and execute loans for the lending strategy.
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