Residential lender Pluto Finance has launched a new 拢250m business aimed at providing finance finance for housing developments in London
Residential lender Pluto Finance has launched a new 拢250m business aimed at providing finance finance for housing developments in London and the south east of England.
The new vehicle will provide developers with a single loan of up to 90% of the cost of the development.
The loans will be in the form of stretched senior development finance, combining senior and mezzanine debt. They will, therefore, provide more capital to developers than traditional senior debt providers, enabling developers to kick start new projects and also to spread their equity across a greater number of schemes.
Pluto Finance鈥檚 new business aims to lend 拢250m over five years.
It has secured initial equity commitments of 拢100m from institutional investors, including Clearbell Property Partners.
When developments have been completed, recycling of the capital will enable Pluto Finance to lend up to 拢250 million over time.
Loan sizes will be 拢10m to 拢30m per project.
The first loan has already been made for a scheme next to the Thameslink station in Iverson Road, West Hampstead, north London (pictured).
The 拢12.1m loan will fund the development of 36 units, comprising 33 flats and three townhouses. Construction will start in August and completion is expected in November 2014.
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