OakNorth Bank completes £40M loan to a social impact investment group that are offering innovative solutions to tackle the social housing and care crisis

  • The loan is to Grosvenor Hill, a newly formed social impact group led by the team behind Mountain Capital & MLX Capital, who have a long-standing track record of delivering high-quality real estate projects across the UK;
  • Grosvenor Hill are a real estate and investment group that uniquely designs and develops projects in partnership with providers to improve the lives of individuals and communities by tackling the social care and housing crisis in the UK;
  • To meet housing needs in England over the next decade, it will be necessary to build 145,000 social and affordable homes each year, including 90,000 for social rent;
  • In contrast, 47,000 affordable homes were completed in 2017/18, 43,000 of which were newly built, and less than 6000 (or 12%) for social rent[1].

OakNorth Bank, the UK bank for entrepreneurs, by entrepreneurs, has provided Grosvenor Hill Social Impact Group, a newly formed social impact fund, with a £40M facility to build its portfolio of social housing residences.

Grosvenor Hill Social Impact Group will be led by the team behind Mountain Capital & MLX Capital, a specialist developer group with a portfolio of single and joint venture schemes that consist of over 1,300 residential units across London and multiple commercial ventures internationally. The investors of the project – Gary Landesberg, David and Elliot Rosenberg have over 30 years of experience investing in the UK’s residential sector and have received debt financing from OakNorth Bank in the past.

Grosvenor Hill Social Impact Group will be managed by Abel Leaman and Dion Michael, who have a track record and experience within the real estate, investment banking, and social housing sectors. Their team will be responsible for acquisitions, asset management and partner relationships.

Commenting on the transaction, David Rosenberg, Director of Grosvenor Hill Social Impact Group, said: “We believe that everyone should have equal access to safe, affordable, and comfortable housing. Our innovative approach enables us to deliver truly transformative solutions to tackle the social housing and care crisis. We received funding from OakNorth Bank to support Mountain Capital’s growth, so we knew they were the right team to help us once again. While this is a new entity working alongside MLX Capital, we have the track record and experience which meant OakNorth Bank took a forward-looking view of our business based on our future potential.”

Greg Manson, Associate Director of Debt Finance at OakNorth Bank, continued: “The team behind Grosvenor Hill Social Impact Group consists of investors with over three decades of real estate experience and specialist knowledge from the Directors of MLX Capital. Working together, they have proven this concept. Good quality supported housing is essential for communities and society, and the team have the varied experience to deliver this through this collaboration. We’re delighted to have once again been chosen as their debt funding partner – repeat business from borrowers is the best validation we can have that we’re delivering on our promise to delight customers.”

 

London law firm, Lawrence Stephens, advised OakNorth Bank on the transaction.

 

[1] Source: Housing.org.uk

ENDS

 

Notes to editors

About OakNorth Bank plc

Launched in September 2015 and founded by entrepreneurs, OakNorth Bank provides fast, flexible, and accessible debt finance to the UK’s Missing Middle.

Since its launch, the bank has:

  • Lent over £7B, directly helping with the creation of 31,600 new jobs and 22,300 new homes across the UK.
  • Raised deposits from c.160,000 savers.
  • Supported several hundred businesses across the UK with the debt finance to pursue their growth ambitions.

It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Visit www.oaknorth.co.uk for more information.

Contact 

Valentina Kristensen, Director – Growth & Communications – valentina.kristensen@oaknorth.co.uk / press@oaknorth.co.uk / +44 757 234 9009

[1] Source: Housing.org.uk

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