Pluto Finance - Funding Property Development

Pluto Finance funds 26-unit residential new build scheme in Milton Keynes

May 2019

Pluto Finance has closed a new £8 million stretched senior residential development loan to Paul Newman New Homes for a new 26-unit scheme in Milton Keynes.

The Monkston Park development will comprise 18 houses and eight affordable apartments, located on the south side of Milton Keynes on the edge of the Ouzel Valley. The site is part of the Council’s broader strategic development plan for Milton Keynes.

This is the second scheme Pluto Finance has funded with Paul Newman New Homes, following the development of a 34-unit development in the New Bradwell area, also in Milton Keynes.

Greg Dunne, Pluto Finance’s Lending Director, comments: “We are delighted to be lending for a second time to such an experienced borrower. Paul Newman New Homes has a great reputation for unlocking complex development sites by working in close partnership with housing associations, landowners and financial institutions.”

Paul Newman New Homes was established in 2004 and has since built over 1,000 new homes in the UK.

Paul Newman says: “To have the backing of a no-nonsense funding partner, such as Pluto Finance, with a quick turnaround, enables our team to deliver much needed new homes in the Milton Keynes area and further afield.”

Milton Keynes is a popular commuter town, with a 30-minute train time to London Euston. The population, currently 250,000 is growing more quickly than in most parts of the UK making it attractive to a variety of household name employers such as Deloitte, Santander, Red Bull racing, Network Rail, John Lewis Distribution and The Home Retail Group. Between 2010 and 2016, the business base increased by over 34%.

Pluto Finance adds new Credit Analyst to London team

May 2019

Pluto Finance has appointed Anish Vora as Credit Analyst joining the firm’s London-based team.

Anish started his career at National Australia Banking Group, focusing on commercial lending for three years, followed by three years working in the wealth management industry with a focus on the analysis of UK equity funds and UK equities. Anish then became an investment manager responsible for placing equity into real asset projects including residential and commercial developments.

At Pluto Finance, Anish joins the 15-strong team. With backing from some of the world’s largest institutional investors, Pluto Finance is currently funding the development of over 2,000 new homes in the UK.

Pluto Finance Annual Drinks Evening

May 2019

Thank you to all our guests who attended our annual drinks event this week at Gargotte by Labassa Woolfe in the heart of Fitzrovia. An enjoyable evening of wine, cheese, charcuterie and great company enjoyed by all.

We look forward to welcoming you again next year.

 

Private sector funding as important as government funding to tackle the housing crisis

March 2019

Last month at the London First Building Summit, Communities Secretary Rt Hon James Brokenshire MP announced nearly £500 million will be spent building more than 11,000 ‘much-needed’ affordable properties across the country. The Strategic funding partnerships by Homes England promises to give the successful housing associations the freedom to spend the money on developments ‘where it can have the biggest impact’.

These latest measures announced are part of the government’s plans to deliver over 300,000 homes a year by the mid-2020s. This is a great step towards meeting the Government’s target, but to meet this, we can’t just rely on housing associations and government funding. Larger, private household-name housebuilders have a large part to play, as do the SME developers.

Shelter’s Commission on the Future of Housing report sites lack of housing supply as one of the key factors in affordability issues for households across the country. Of course, this is a particular problem in London and the South East where Pluto Finance is focused. We need to build new homes and do so quickly. At Pluto Finance we work with all housebuilders, providing quick funding solutions, covering bridging, senior and stretched senior loans from £1m to £50m+ to enable developers of any size to get their new projects off the ground and we see these through to completion and beyond. We are always happy to look at more complicated funding agreements, working with our clients to provide the flexibility they need at the very best rate. We are supporting developers that are strategically focused on providing essential housing that is at the affordable end of the housing market in the South East.  We are not financing high end units that are out of reach for most.

Despite the uncertainties in the market at present, as we work through the Brexit outcome, at Pluto Finance, business is robust.  We have very strong backing from some of the world’s largest institutional investors and we are here to keep the market moving, with our experienced team on hand to smoothly facilitate tailor made loans.

We are currently funding the development of 2,500 new residential units across the South East and are continuing to support housebuilders in providing the much-needed new homes to tackle the housing crisis.

Pluto Finance shortlisted for RESI Awards 2019

March 2019

We are delighted to have been shortlisted for Residential Financier of the Year at this year’s RESI Awards.

Organised by Property Week, the RESI Awards bring together the key players in the residential market to celebrate its successes from the past year.

The Awards will be held on the evening of 15th May at the prestigious Grosvenor House in London.

 

Pluto Finance funds Elevate Property Groups’ 216-unit Kent scheme

February 2019

Pluto Finance has closed a new £35 million stretch senior residential development loan to Elevate Property Group for a new 216-unit apartment scheme in Ashford, Kent.

Ashford continues to see significant new developments, providing a mixture of both urban and rural new-build homes in an attractive and affordable area for many families. Ashford is well connected to central London via its railway service which offers a 38-minute direct train to London St Pancras Station.

Greg Dunne, Senior Lending Manager at Pluto Finance, comments: “Ashford has undergone significant regeneration in the past five years and the influx of investment looks set to continue. Elevate Property Group is a highly experienced developer and has a great track record of delivering high quality schemes across the country. We are delighted to complete our first loan with Elevate Property Group and we look forward to working with them.”

Steve Dodd, CEO at Elevate Property Group, adds: “We are very excited to be delivering our Ashford project, providing much needed new homes at an affordable price point in a fantastic location. We appreciate the support and flexibility of the Pluto Finance team in getting this development up and running.”

Pluto Finance completes £100m of bridge loans in 2018

February 2019

Pluto Finance achieved its goal of completing £100 million of bridge loans in its first full year of providing bridging finance.

This total has accumulated from providing 20 loans throughout England and Wales, with an average loan size of £4.8 million and loan to value of up to 72%.

The purpose of these loans ranged from office buildings with short leases remaining to the refurbishment of office and residential buildings. Loans have also been provided for sites with residential planning permission where borrowers were seeking to reconfigure the planning and then obtain development finance, and for development exit.

One of the most notable bridge loans Pluto provided in 2018 was to assist with the urgent acquisition of an office block in Staines-upon-Thames. The loan itself had a 68% loan to value, with market leading pricing of 0.6% pcm and 0.81% arrangement fee.

Other significant projects include a gross development loan of £11.932 million at 73.1% LTGDV to fund the build costs of a new scheme of 45 self-contained flats in Brentwood, Essex, and refinance previous acquisition costs

A gross development loan of £10.572m was also provided for a new build scheme of 30 houses in Norton Heath, Essex. This sum covered the refinancing an existing bridge loan, which was used to secure the purchase of the scheme whilst enabling remediation works to be completed and quantified. This loan was provided at 72% LTGDV with a day 1 loan of £2.97million plus 100% of the build costs at £6.450 million. In addition, Pluto Finance funded £200,000 of the mobilisation costs including remediation works.

Justin Faiz, Partner at Pluto Finance, comments: “We set the team an initial target of £100 million of bridge loans and are delighted to have achieved this within just one year. We continue to offer the best rates on bridge loans, as well as senior and stretched senior loans, and are confident of exceeding this total in 2019.”

Pluto Finance funds Galliard Homes’ 50-unit London scheme

January 2019

Pluto Finance has closed a new £12.5 million loan to Galliard Homes for a new 50-unit residential development in Leyton, London E10.

Located in the Leyton area, which continues to see significant regeneration, the Tallack Road site is in walking distance to numerous rail and tube links, including Leyton station which serves the Central Line and Walthamstow Central, which connects the Victoria Line and London Overground services. Development of the Leyton scheme is due for completion in 2020.

Mario Ioannides, Lending Director at Pluto Finance, comments: “We have been lending to Galliard Homes since 2014, working closely with the team on developments across the South East and we are delighted to be funding their latest scheme in Leyton. At only 60% LTV, we were able to offer a cheaper interest rate than the clearing banks.”

Jonathan Morgan, Director of Investment and Developments at Galliard Homes, says: “We have a number of live development loans with Pluto Finance. They continue to offer a market-leading combination of pricing and pragmatism and we are very pleased to extend our cooperation to our new Leyton project.”

Pluto Finance appoints new Lending Manager

January 2019

Pluto Finance has appointed Andrew Lipscombe as Lending Manager, joining the firm’s London-based team.

Andrew joins Pluto Finance from Santander, where he held the position of Associate Director in the Structured Real Estate Finance Team. At Santander, Andrew worked on the execution and on-going management of a portfolio of both investment and development facilities. Prior to this Andrew worked for Royal Bank Scotland in the Corporate Real Estate Team in Bishopsgate focusing on private equity clients.

At Pluto Finance, Andrew will be responsible for originating residential development finance opportunities. Justin Faiz, Partner of Pluto Finance, comments “Andrew brings with him a wealth of experience in finance and lending. He is a great asset to the team and perfectly placed to enhance our loan offerings.”

Pluto Finance Sponsors the Housebuilder Awards 2018

November 2018

Pluto Finance was delighted to be involved with the Housebuilder Awards 2018. Held on 1 November at the InterContinental London – The O2, the evening celebration was attended by the great and the good of the Housebuilding world, revealing the winners for awards including Sustainable Housebuilder and Best Refurbishment Project of the Year.

The black-tie event was hosted by comedian Jimmy Carr. Following the awards presentation, the evening entertainment continued with a quiz and casino, sponsored by Pluto Finance. Pluto Finance’s Senior Lending Manager Greg Dunne was on hand to present the award to the quiz winner Bellway Homes. Greg commented: “At Pluto Finance we are funding the development over 2,000 new homes, so it was a great pleasure to be involved in this prestigious evening. Congratulations to all the well-deserving winners.”

Get in touch with us

Speak to one of our experienced team to find out how Pluto Finance can help you.

Your team

Anish Vora

Anish Vora

Credit Analyst

0207 442 2111

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Mario Ioannides

Mario Ioannides

Lending Director

020 7442 2105

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Andy Blenkinsop

Andy Blenkinsop

Partner

020 7442 2103

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Iori Antcliff

Partner

020 7442 2112

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Greg Dunne

Greg Dunne

Lending Director

020 7442 2110

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Rupert Burrows

Rupert Burrows

Construction Director

020 7442 2116

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Kate Titchmarsh

Kate Titchmarsh

Communications Manager

07595 673 610

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Charlene Sherry

Office Manager

0207 442 2106

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Andrew Lipscombe

Andrew Lipscombe

Lending Manager

0207 442 2121

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Robert Swift

Robert Swift

Head of Investor Relations

0207 442 2119

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Sam Hudson

Sam Hudson

Credit Operations Manager

020 7442 2118

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Recent transactions

£12,500,000

Senior Loan | 50 Units | Leyton, London E10