M&G Investments is providing a £517m loan to Lodha UK for the development of its flagship luxury residential scheme at No.1 Grosvenor Square, Mayfair, W1.
The entire loan will be invested and held by funds managed by M&G.
On completion in December 2019 it will provide 48 residential units with on-site leisure amenities designed by international interior design firm Yabu Pushelberg.
Lodha purchased the site in 2014 and in 2015 Westminster City Council granted consent for its complete redevelopment.
Grosvenor Square is undergoing a period of significant changes. In addition to the development by Lodha, Rosewood has recently been announced as the hotel operator for the redevelopment of the former US Embassy at the western end of the square.
Finchatton has also secured Four Seasons Hotels & Resorts to operate private residences at its 20 Grosvenor Square scheme.
Dan Riches, director, real estate finance at M&G Investments, said: “We have worked extremely closely with Lodha over the past 12 months to ensure the delivery of the development of this historic site in central London.
“M&G’s direct origination model gives our institutional investors direct access to prime real estate such as No.1 Grosvenor Square.
“Our unique ability to invest and hold large loans on the most complex of transactions has proven extremely attractive to borrowers and provides us with more opportunities to create value for our investors.
“Private credit investments have become increasingly sought after by institutional investors seeking higher returns than are available in more liquid markets.”
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