Blackstone Real Estate Debt Strategies (BREDS) and Pluto Finance have launched a partnership to target European mid-market lending, with an initial goal to deploy £2bn (€2.3bn) within the next two years.
The partnership plans to provide whole loans of between £25m and £100m to real estate owners and developers in the UK and continental Europe, primarily focusing on the logistics and living real estate sectors.
Justin Faiz, CEO of Pluto Finance, said: “We are very excited to partner with BREDS as we expand our real estate lending platform across the UK and into continental Europe. The combination of Pluto’s specialist expertise paired with BREDS’ scale and resources, positions us strongly to bring highly flexible, institutional-grade private credit solutions to real estate owners and developers.”
Ciaran Singh, managing director for Europe at Pluto Finance, said: “We are seeing significant demand from borrowers across Europe for private credit funding to support investment in mid-market property assets and developments across multiple sectors. This hugely exciting partnership with BREDS means that we will be able harness Pluto’s origination, structuring and management expertise to deliver debt solutions to meet this growing demand.
“Our in-country teams have deep knowledge of our core continental European target markets, and we look forward to building on our strong track record in the UK, where Pluto has lent nearly £3.4bn across more than 300 transactions.””
David Gorleku, head of BREDS Europe at Blackstone, said: “Pluto Finance has an established and successful track record in small-to-medium balance real estate lending, and we are excited to partner with them to bring institutional capital to an otherwise underserved market.
“As a platform, we continue to broaden our investment approach, and we view this as an attractive opportunity to expand our lending capabilities into the mid-market segment where we see compelling relative value.”
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