Grosvenor’s direct lending business has announced the completion of a £22.6 million bridge-to-development loan to support the acquisition and redevelopment of One Vincent Square, a pre-war building in Westminster, London SW1, which will be delivered as a high‑quality residential for-sale scheme.

Lending to BauMont Real Estate Capital, the value-add real estate real estate investment manager that is part of M&G Real Estate, alongside Hondo Enterprises, a London‑based developer, the 48-month facility supports the project from acquisition to delivery under a single financing solution.

The asset comprises an existing c.25,000 sq ft building in a corner location, with impressive outlooks across Vincent Square, a 13-acre protected green space. The site has secured consent from Westminster City Council to develop 26 new homes, bringing a well-located asset back into active residential use.

The transaction builds on Grosvenor’s growing relationship with BauMont Real Estate Capital through its lending platform, underlining continued demand for flexible capital to unlock complex, value‑add projects in prime UK locations.

Work has begun on site, with practical completion expected in 2027.

Steph Ball, Executive Director for Investment at Grosvenor Property UK, commented:

“Transitional projects often require a more nuanced approach to lending, flexing to support the value-add business plan. This transaction demonstrates how our direct lending platform can support that complexity, combining real estate expertise with the ability to structure bespoke finance. We value long-term relationships with sponsors like BauMont and Hondo and are pleased to be working together again to unlock high-quality residential use from existing buildings.”

Taylor McWilliams, Managing Partner at Hondo Enterprises said: “We are pleased to be partnering with Grosvenor alongside BauMont as we bring forward 26 high-quality new homes in Westminster. A flexible funding structure in place from acquisition through to delivery has been key to unlocking this site, returning an existing building to residential use and contributing to housing supply in a constrained central London market.”

Launched in 2022, Grosvenor’s direct lending business has financed over 4,100 homes across the UK, providing funding across the development cycle, including land bridge loans, development loans and investment loans. Deploying capital directly from its own balance sheet, the business offers an unlevered and flexible approach to lending, supporting a range of asset types and structures, from residential‑led developments and student accommodation to, most recently, several central London office refurbishments. 

This approach is underpinned by Grosvenor’s in‑house real estate expertise, including experience in the refurbishment and repositioning of office assets, and supports its broader ambition to decarbonise the built environment through the reuse and upgrading of existing buildings, contributing to housing supply.

The terms of the loan are not disclosed. Grosvenor was advised by CBRE. 

ENDS

To request further information or comment, please contact Fay Rajaratnam on +44 207 312 2754 or fay.rajaratnam@grosvenor.com

About Grosvenor Property UK

LinkedIn      Instagram     Website 

Grosvenor is an international organisation whose activities span urban property, food and agtech, rural estate management, and support for philanthropic initiatives. With a near-350-year track record, we are committed to delivering lasting commercial, social, and environmental benefits, meeting today’s needs while taking responsibility for those of future generations. 

Our UK property business supports around 1,000 businesses and thousands of residents and workers across London’s West End, while also investing in sustainable neighbourhoods across England. As a company aligned with the 1.5°C climate target, we pioneer change and innovation in urban development, ensuring our places benefit both people and the planet in the long term.