Barclays and Lloyds back Ronson’s Millbank project

Barclays and Lloyds are in the final documentation stages of a deal to provide development finance for Gerald Ronson’s Riverside Walk scheme at Millbank, SW1.

The project will convert 155-166 Millbank into a 17-storey apartment block. Ronson Capital Partners, a private equity club, acquired the building last year from Derwent London. The two UK banks will provide around £400m of senior debt.

Crosstree Real Estate, the private equity firm backed by Swiss billionaire Ernesto Bertarelli, is providing £30m of subordinated debt, in return for a profit share, and has brought in another party to provide £20m-£25m of mezzanine finance.

Last year Barclays provided £90m for Grosvenor’s and Native Land’s acquisition and development of the 0.8-acre Alpha Place site in SW3, a former electricity sub-station with an extensive frontage on Chelsea Manor Street.