UK property firm Grosvenor and Italy’s Generali Real Estate have launched a new partnership to provide debt financing to UK residential developers.
Building on Generali Real Estate’s experience of financing real estate projects and Grosvenor’s experience as a developer with knowledge of the UK housing market, the partnership has been seeded with an initial £ 50 million (€ 58 million) from each organisation and will operate as a ‘pari-passu’ coinvestment strategy.
Generali Real Estate and Grosvenor will look to address the shortage of funding available from traditional lenders by providing loans of up to £ 60 million for residential projects of all types and tenures, with a focus on developments with strong environmental credentials in London and the UK’s regional cities, the companies said.
The move expands Grosvenor and Generali Real Estate’s existing strategies in real estate debt. Grosvenor launched a £ 120 million residential development debt strategy in April last year, while Generali’s is seeking to raise € 1 billion pan-European Real Estate Debt Fund II.
The joint venture’s first transaction will support Aitch Group to deliver 65 homes, comprising 49 market-value and 16 affordable homes near Canary Wharf in London.
Source: realassets.ipe.com on the 11th of January, 2024
https://realassets.ipe.com/news/grosvenor-and-generali-launch-uk-residential-debt-co-investment-strategy/10070962.article