Pluto Finance - Funding Property Development

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.”

Pluto Finance closes £67m of development and bridging loans in 5 days

October 2018

Pluto Finance has just had of its busiest weeks ever – closing £67m of development and bridging finance in 5 days. Justin Faiz, Partner, described the edited highlights of that week:

Monday: Closed a £10.6m senior development facility for 106 flats in Basildon, Essex to a repeat Pluto borrower. This scheme is delivering micro-units which the borrower intends to hold for rental.

Tuesday: Provided a stretched senior loan for £19.6m to acquire and develop an office-to-residential scheme in Milton Keynes. With a tenant in place for 6 months, we provided a development loan from day 1, avoiding the need for a bridge facility.

Wednesday: Double whammy – 90% LTC stretched senior loan of £10.8m for 30 houses in Essex (nr Brentwood). Plus a development-exit bridge for £7.2m in Southend.

Thursday: Quiet day today – only a £3.7m bridge to fund an office acquisition in Staines with a short lease in place. The borrower intends to take Pluto’s development finance for a PD scheme once they have negotiated VP – in these cases we offer a reduced arrangement fee on the development finance.

Friday: Ended the week on a high with a senior development loan of £16.1m for 92 flats in Harrow. With interest rate of 4% over LIBOR for up to 60% LTV, we are winning more and more business from high street banks (no non-utilisation fee helps with this).

Faiz continued “With over 80% of our lending in the last month to repeat Pluto borrowers, clients are is clearly recognising not only our excellent pricing, but also our commitment to customer service.”

Providing stretched senior and senior development finance as well as bridging finance under one roof, Pluto Finance has become a real one-stop-shop for all residential development finance needs. The business is on track to lend £500m this year across the three products.

Pluto Finance makes largest loan to date, lending £60m for Brentford office-to-residential development scheme

July 2018

Pluto Finance has recently provided a £60m senior debt facility to fund the refinance and redevelopment of the former Sky headquarters in Brentford, West London. This Permitted Development Rights scheme will turn the 140,248 sft office campus into 268 flats and will be one of London’s largest office-to-residential projects.

Lending Director, Mario Ioannides, said “We were delighted to be supporting the development of this residential scheme. This is our largest loan to date and we have a good appetite to continue supporting similar sized residential developments in and around London, particularly where flats will be registered for Help-to-Buy. It will enable private buyers, and particularly first-time buyers, the opportunity to own their own home in London at affordable prices, starting from as little as £250,000.”

Westley Richards from BBS Capital, Debt Advisor on the transaction, said “We are very pleased to once again work with Pluto Finance on this large scheme. They deliver on what they say they will do and completed the transaction with professionalism and speed.”

 

Pluto Finance lends £20m for a new residential development scheme in Bracknell

February 2018

Pluto Finance continues to provide flexible development finance for large residential schemes with the completion of a £20m stretched senior debt facility for an office to residential project in Bracknell.

Lending Director, Mario Ioannides, said “We are pleased to have delivered the funding on this scheme in less than 4 weeks from start to finish, enabling our Borrower to complete on the site purchase promptly. This was a challenging funding request on a PD scheme that had a number of complications – including some flats currently not having any windows until a new further planning permission is granted!”.

Ioannides also explained “Bracknell’s approach to Permitted Development Rights schemes is particularly complex, with an Article 4 about to be enacted and the requirement for developers to provide offsite amenity land. We are delighted to have been able to take a highly pragmatic approach to these issues and provide a large stretched loan in a very timely manner.”

Pluto Finance lends £26m for a new residential development in Southall

November 2017

Pluto Finance has completed a £26m senior facility to assist with the acquisition and redevelopment of the former Honda car dealership in Southall. The new build development will provide 118 private apartments and 52 affordable units.

Lending Director, Mario Ioannides, said “We were delighted to provide another development loan for Galliard Homes and also to be part of the exciting Southall regeneration project. At 65% loan to cost, our senior debt was priced competitively with the high street banks and arranged promptly to enable Galliard to meet their completion deadline.”

Jonathan Morgan, Director of Investments and Developments at Galliard said “We are very pleased to once again work with Pluto Finance on this important scheme for Galliard Homes and we look forward to carrying out more successful transactions with them in the future.”

Providing stretched senior and senior development finance as well as bridging finance under one roof, Pluto Finance has become a real one-stop-shop for all residential development finance needs. The business is on track to lend £500m this year across the three products.

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Kate Titchmarsh

Kate Titchmarsh

Communications Manager

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Iori Antcliff

Iori Antcliff

Partner

020 7442 2112

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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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Greg Dunne

Greg Dunne

Senior Lending Manager

020 7442 2110

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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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Andrew Lipscombe

Andrew Lipscombe

Lending Manager

0207 442 2121

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Charlene Sherry

Charlene Sherry

Office Manager

0207 442 2106

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Andy Sears

Andy Sears

Lending Director

020 7442 2114

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Rupert Burrows

Rupert Burrows

Construction Director

020 7442 2116

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Stretched Senior Loan | 271 Apartments | Brentford TW8