Grosvenor finances landmark Belgravia office redevelopment with £53.5 million loan

Grosvenor's UK lending business has provided a £53.5 million loan to Beltane Asset Management and TPG Angelo Gordon to support the acquisition and redevelopment of One Chester Street, a landmark office building in Belgravia.

The transaction represents the largest loan completed to date under Grosvenor's UK property business' lending strategy, which provides flexible financing to experienced sponsors delivering projects across the real estate lifecycle, including ground-up development, refurbishment, repositioning and asset enhancement opportunities throughout the UK.

The three-year facility will support an extensive refurbishment programme designed to reposition the property as a high-quality, sustainable office destination in one of London's most prestigious West End office locations, offering proximity to Mayfair, St James and Knightsbridge.

Situated on the corner of Chester Street and Grosvenor Place, the c.50,000 sq. ft building benefits from dual frontage and is set to undergo a comprehensive redevelopment that will enhance its sustainability credentials and create Grade A office space with private terraces and exceptional views.

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

"One Chester Street reflects the type of opportunity we look to support through our lending business: a well-located asset with strong underlying fundamentals, backed by experienced sponsors and a clear strategy to create long-term value. We are pleased to be supporting Beltane and TPG Angelo Gordon as they reposition the asset for its next phase.

"Many of today's most compelling opportunities lie in reimagining well-located buildings, and supporting the refurbishment of existing assets is an important part of the transition towards a more sustainable built environment. By providing flexible financing solutions, we can help sponsors deliver higher-quality, lower-carbon space while preserving and enhancing some of London's most distinctive commercial buildings."

Duncan Roe, Partner at Beltane Asset Management, said:

"One Chester Street represents a strategic addition to our portfolio. The planned refurbishment will reposition this asset to meet current occupier requirements whilst respecting the architectural heritage of this prestigious Belgravia address."

Launched in 2022, Grosvenor's UK lending business provides financing across the real estate lifecycle, with a focus on projects that improve the quality, sustainability and long-term performance of the built environment. Lending from its own balance sheet, Grosvenor combines long-term capital with extensive in-house real estate expertise to support complex development, refurbishment and repositioning opportunities.

Over the next decade, Grosvenor aims to deploy approximately £1 billion through its lending business, supporting projects that deliver strong commercial returns, increase housing and office supply, and contribute to the decarbonisation of the built environment.

The terms of the loan are not disclosed.