Duke of Westminster’s property business to deploy £900m in resi development funding

This will comprise new funding and recycling capital from existing and future lending.

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 sq ft of office space in the UK’s key cities.  

The three new transactions, totalling £46m, comprise a £30m loan to support McAleer and Rushe to build out ‘The Place’ a 409-unit PBSA scheme in Nottingham, and three land bridge loans to McLaren Property totalling £16m to fund new PBSA projects in Nottingham and Leeds, and a BTR scheme in Leeds. 

Combined with transactions to date with DWS, Urban Splash, Aitch Group and Grosvenor’s recent lending partnership with Generali Real Estate, Grosvenor is supporting the delivery over 1,800 homes across a range of tenures.

Rachel Dickie, executive director of investment at Grosvenor said: “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.

“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 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.”