Grosvenor and Generali Real Estate Launch Residential Private Debt Finance co-investment strategy

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. 

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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. 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 office space. 

Generali Real Estate, with its € 1bn target size Generali Real Estate Debt Fund II (GREDIF II), targets to build a well-diversified and resilient investment portfolio, aiming to invests across Europe (inclusive of UK), and across different asset classes. GREDIF II leverages the track record in commercial real estate debt that Generali Real Estate has developed over time, thanks to the management of €1 bn of financing with underlying assets on behalf of Generali Group insurance companies, and more recently with the dedicated predecessor “Generali Real Estate Debt Investment Fund” (GREDIF), launched in 2019 and focused on commercial real estate debt. The GREDIF fund has successfully raised €1.45 bn from Generali Group companies and third-party clients, now fully deployed in the financing of high-quality assets across Europe. 

You can now read the full press release at the link below

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