Grosvenor and Generali Real Estate (the Generali Group asset management company specialized in real estate investments) have today announced a new partnership to support residential developers with debt financing.
Building on Generali Real Estate’s experience of financing real estate projects and Grosvenor’s experience as a developer and knowledge of the UK housing market, the partnership has been seeded with an initial £50m from each organisation and will be characterized by a ‘pari-passu’ co-investment strategy.
Generali Real Estate and Grosvenor will look to address the shortage of funding available from traditional lenders by providing loans of up to £60m for residential projects of all types and tenures, with a focus on schemes with strong environmental credentials in London and the UK’s regional cities.
Today’s announcement is an extension of both Grosvenor and Generali Real Estate strategies on real estate debt.
Grosvenor’s £120m residential development debt strategy was launched in April 2023. Allocating additional capital to the residential sector continues the diversification of Grosvenor’s £900m regional investment portfolio, which also comprises retail and entertainment destination Liverpool ONE and c500,000 sq. ft of regional office space.
Source: press release received on 10 Jan 2024.