Pluto Finance - Funding Property Development

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.

Pluto Finance lends £24m for office to residential conversion in Ilford

September 2017

Pluto Finance has completed a £24m stretched senior loan to fund the acquisition of an office building in Ilford and the subsequent conversion to residential. When completed the building will provide around 100 flats as well as office and retail space.

Partner Justin Faiz said “At circa 90% loan to cost, we are delighted to make another stretched senior loan in East London and to be part of the Ilford regeneration story. With affordable prices and already great commute times, this is an area that is set to thrive as CrossRail comes online.”

Pluto Finance has been lending since 2011 and is one of the leading alternative lenders for residential development. As well as providing stretched senior finance, Pluto also provides senior loans, with interest rates from 4% for up to 70% loan to cost, and bridging finance.

Pluto Finance completes £500m institutional fundraise for residential development lending

May 2017

Pluto Finance has recently raised over £500m of institutional capital to be deployed across new senior debt and bridging lending strategies as well as to relaunch Pluto’s stretch senior lending at significantly lower interest rates.

Pluto Finance aims to lend £500m across these three loan types in the next year. The team have hit the ground running with over £95m of loan already credit approved since the capital raise. To support its growth plans, Pluto has recently hired four new staff into its lending team.

Partner Justin Faiz said “This significant capital raise provides Pluto with the firepower to continue providing market leading loans. We are now able to provide lower leverage senior debt with interest rates from 3.95% – cheaper than the challenger banks, and competitive with the clearing banks but with a much faster turnaround time.”

Pluto Finance has been lending since 2011 and is one of the leading alternative lenders for residential development, particularly for stretch senior finance. Pluto’s relaunched stretch senior loans will continue to fund up to 90% of costs, but at materially lower interest rates than previously.

Alternative lenders have taken market share from the banks over recent years offering higher leverage finance and much better customer service. Over half of Pluto’s loans are now to repeat borrowers, a proportion the team expect to grow over time with the addition of new lending products.

Justin Faiz continues “We are the only lender to offer stretch, senior and bridging finance under one roof – turning Pluto into a real one-stop-shop for all residential development finance needs. We are grateful to our new and existing institutional investors for the support they are continuing to provide to our business through this important capital raise.”

In explaining the move into bridge lending, Partner Andrew Blenkinsop adds “We are delighted to be able to support our clients throughout the entire project lifecycle by providing short term loans to assist with site acquisition pre-planning and also to refinance completed units.”

Jonathan Morgan, Director of Investment & Developments of Galliard Homes, said “We are delighted to continue our relationship with Pluto Finance and we are already in advanced discussions to take Pluto’s new senior loan facility on a number of projects.”

Pluto Finance Backs Home Counties Focused Developer in Hook

November 2016

Pluto Finance has completed a stretched senior development loan of £15m for an office to residential project in Hook, Hampshire. The Pluto development loan will enable a Home Counties focused developer to convert the building into 107 private apartments with an anticipated GDV of £22m.
With one bedroom apartments priced from £175,000 the development qualifies for the Government’s Help to Buy Scheme. To date there has been strong demand from both local owner occupiers and investors. Mario Ioannides, Lending Manager at Pluto Finance, said: “We are delighted to have supported this project when at the time other lenders had withdrawn from the office to residential sector”.
This is the second significant development loan which Pluto has completed in March and follows the funding of 227 apartments in Southend. Pluto is currently funding the development of over 2,000 homes across London and the South East.
Pluto Finance, the leading residential development lender, has been providing loans to the UK residential development sector since the credit crunch in the form of mezzanine and stretched senior funding. Over that time, the business has established a proven track record and has now completed transactions with a combined GDV of over £1bn.
Having been shortlisted as “Residential Financier of the Year 2016” by Property Week for the third year running, Pluto Finance goes from strength to strength. It provides developers with a single loan of up to 90% of the cost of the development, enabling developers to kick start new projects and also to spread their equity across a greater number of schemes.

Pluto Finance backs leading regional developer with stretched senior loan in Southend

September 2016

Pluto Finance has completed a stretched senior development loan for a £50m landmark residential project in Southend. The Pluto development loan will enable experienced regional developer, Randall Watts, to convert the building into 227 private and 52 shared ownership apartments. Beaumont Court and Richmond House are located at the heart of the wider Southend regeneration project which will include new retail and leisure space as well as a refurbished train station.

With one bedroom apartments starting from as little as £130,000 and just under a 1 hour commute to London, there has already been strong demand from local owner occupiers and investors alike. Justin Faiz, Partner of Pluto Finance, said: “We are delighted to have supported this landmark scheme which will deliver much needed residential accommodation in Southend and contribute towards the regeneration of the town centre.”

Mark Watts, Chief Executive of Randall Watts who are building the homes says, “We are proud to continue our role in providing much-needed housing in Southend”.

Pluto Finance, the leading residential development lender, has been providing loans to the UK residential development sector since the credit crunch in the form of mezzanine and stretched senior funding. Over that time, the business has established a proven track record and has now completed transactions with a combined GDV of over £1bn.

Having been shortlisted as “Residential Financier of the Year 2016” by Property Week for the third year running, Pluto Finance goes from strength to strength. It provides developers with a single loan of up to 90% of the cost of the development, enabling developers to kick start new projects and also to spread their equity across a greater number of schemes

Get in touch with us

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

Your team

Andy Blenkinsop

Andy Blenkinsop

Partner

020 7442 2103

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Robert Swift

Robert Swift

Head of Investor Relations

0207 442 2119

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Andy Sears

Andy Sears

Lending Director

020 7442 2114

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Mario Ioannides

Mario Ioannides

Lending Director

020 7442 2105

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Rupert Burrows

Rupert Burrows

Construction Director

020 7442 2116

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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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Andrew Lipscombe

Andrew Lipscombe

Lending Manager

0207 442 2121

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Amy Murray

Amy Murray

Loan Administrator

0207 442 2106

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Iori Antcliff

Iori Antcliff

Partner

020 7442 2112

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Recent transactions

£58,000,000

Stretched Senior Loan | 271 Apartments | Brentford TW8