Grosvenor’s private credit business has completed a circa £40m loan to BauMont Real Estate Capital and Spinnaker Estates to support the acquisition and rolling refurbishment of the 416-bed Ropemaker Court purpose-built student accommodation (PBSA) scheme in Manchester.
The five-year facility, which includes a capex tranche for value-add refurbishment works, will enable BauMont and Spinnaker Estates to acquire and upgrade the 2012-built scheme, which is fully nominated to a leading academic institution.
Steph Ball, investment director at Grosvenor Property UK, said: “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, added: “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, said: “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.”
Grosvenor was advised by CBRE.
