Pluto Finance - Funding Property Development

Summer cancelled as Pluto Finance completes over £110m of lending in July and August

September 2019

Whilst the rest of the industry were sunning themselves on the beach this summer, the Pluto Finance team have been hard at work, completing over £110m of bridging and development lending in July and August.

Pluto has been particularly active in bridge lending over the holiday period. Highlights include lending £10.5m for a leasehold site acquisition bridge in Finchley, and £2.5m for a garage with planning for residential in Wimbledon. The team also completed a number of refinance bridges – typically providing the borrower with an equity release as well as refinancing their existing debt.

In development lending, Pluto funded four office-to-residential schemes across the Home Counties, including lending £16.1m to develop a scheme of 77 flats in Brentwood, Essex, and £21.0m for a 99 unit scheme in Godalming, Surrey. New build schemes include £11.0m for 26 flats in Walthamstow.

Justin Faiz, Partner at Pluto Finance, comments: “We are delighted to have had the opportunity to fund some excellent projects this summer. Over 75% of this lending has been to repeat borrowers, for whom our flexibility and ability to meet tight funding deadlines is a core part of our offering. We are now able to offer either the highest leverage or the cheapest finance cost on any bridge or development loan – although despite many borrower requests, unfortunately we still can’t satisfy both these requirements at the same time.”

Pluto Finance appoints new Lending Director

September 2019

Pluto Finance has appointed Simon Chapman as Lending Director joining the firm’s London-based team.

Simon joins from Lendco where he was business development director. Having started his career at Investec Bank, Simon has also held positions at UBS, Commercial Acceptances Limited (part of Close Brothers) and Amicus Finance, specialising in all aspects of property finance, working closely with clients.

Simon comments: “Pluto Finance provides a fast turnaround time and excellent quality of customer service. Over half of its loans are made to repeat borrowers, a testament to such a respected team. I am particularly excited to be able to deliver our new low leverage bridging product, with market leading rates which in addition to the existing product offering provided at Pluto will provide me with the necessary tools to service every client and introducers needs.”

At Pluto Finance, Simon joins the 20-team which specialises in providing Stretch Senior development finance, Senior Development Finance and Bridging Loans in the property sector, across the South of England. 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 closes £31.5 million of bridging loans in Poplar

July 2019

Pluto Finance has closed a total of £31.5 million in bridging loans, to finance two properties in Poplar in the London Borough of Tower Hamlets in East London.

The specialist property lender provided a £12.7 million loan to fund the acquisition of a former document storage centre in Poplar.

The property is located in a strategic position in the London Borough of Tower Hamlets, between Limehouse and Silvertown, and currently has B8 storage and distribution use.

Mario Ioannides, Lending Director at Pluto Finance, comments: “The borrower for this loan is a specialist at obtaining significant planning consents and we are delighted to lend to such an experienced and diligent client. We provided a 12-month bridge facility with the option to extend for a further 12 months if required.”

Also, within Poplar, Pluto has provided a £19 million development exit bridge to allow a repeat borrower to take out a significant equity release after achieving practical completion.

Mario adds: “At Pluto Finance we are able to move very quickly to provide finance facilities of this type to assist borrowers at all stages of 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.”

Get in touch with us

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

Your team

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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Iori Antcliff

Partner

020 7442 2112

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Charlene Sherry

Office Manager

0207 442 2106

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Simon Chapman

Simon Chapman

Lending Director

020 7442 2117

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Greg Dunne

Greg Dunne

Lending Director

020 7442 2110

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Anish Vora

Anish Vora

Credit Analyst

0207 442 2111

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Kate Titchmarsh

Kate Titchmarsh

Communications Manager

07595 673 610

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Robert Swift

Robert Swift

Head of Investor Relations

0207 442 2119

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Andy Blenkinsop

Andy Blenkinsop

Partner

020 7442 2103

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Sam Hudson

Sam Hudson

Credit Operations Manager

020 7442 2118

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