Grosvenor’s private credit business has recently completed a c.£40 million loan to support the acquisition and rolling refurbishment of Ropemaker Court, a 416-bed Purpose-Built Student Accommodation (PBSA) asset in Manchester.

The five-year facility, which includes a capex tranche for value-add refurbishment works, will enable BauMont Real Estate Capital and UK-based real estate investment and asset management firm, Spinnaker Estates, to acquire and upgrade the scheme. Ideally located near the University of Manchester and the Manchester Metropolitan University campuses, the property is fully nominated to a leading academic institution. 

The sponsors plan to reposition the 2012-built property to meet growing demand for high-quality, amenity-rich student housing.

Ropemaker Court, which already has an EPC A rating, will benefit from further environmental enhancements, including the installation of solar panels and deployment of smart building technology to reduce energy use.

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

“This transaction, our second loan to BauMont, reflects our strategy of partnering with high-quality sponsors and funding projects that deliver strong commercial returns, boost housing supply and decarbonise the built environment.

By lending from our own balance sheet, we can provide flexible, tailored capital and deliver with the speed and clarity our partners expect.”

Damien Pasini, Investment Director at BauMont Real Estate Capital, commented:

“This investment reflects a continuation of our UK living strategy, focused on assets with strong underlying fundamentals and requiring targeted capital investment. Manchester is among the UK’s most attractive PBSA markets, underpinned by scale, a sustained supply-demand imbalance, and the presence of leading academic institutions. We are pleased to have completed a second loan with Grosvenor to reposition Ropemaker Court into a best-in-class scheme.”

Andrew Turton and Abhi Agarwalla, Founders of Spinnaker Estates, commented:

“Our strategy in the UK PBSA sector is built around identifying structurally undersupplied, high-liquidity university markets and repositioning legacy assets into modern, operationally resilient accommodation. Ropemaker Court aligns squarely with that approach. We’re pleased to be working alongside CBRE Grosvenor and BauMont to execute a targeted business plan and deliver long-term value through thoughtful asset and operational management.”

Launched in 2022, Grosvenor’s private credit 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. 

Over the next decade, Grosvenor aims to deploy c.£1bn through its lending arm, exploring various asset types and lending options, funding projects which deliver strong commercial returns, boost housing supply and contribute to Grosvenor’s ambitions towards decarbonising the built environment.

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

About Grosvenor

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Grosvenor is an international organisation whose activities span urban property, food and agtech, rural estate management and support for philanthropic initiatives.

We are a values-led business which represents the Grosvenor family and share a common purpose - to deliver lasting commercial, social and environmental benefit - addressing today’s needs while taking responsibility for those of future generations.  

With a track record of over 340 years, we work to improve urban property and places in many of the world’s leading cities, promoting sustainability within the built environment and enhancing the wellbeing of customers and communities. 

Our UK property business supports c1,000 businesses and tens of thousands of residents and workers across London’s West End each day. We also invest in, create and manage sustainable neighbourhoods across England. As a 1.5oC aligned company, pioneering change and new ways of thinking about property we aim to ensure our places benefit both people and the planet over the long term.