Pluto Capital and Mountgrange have launched a new fund to help finance residential developments in London and the south-east of England. The fund was established through Mountgrange's real estate opportunity fund MoREOF and will be managed by Pluto Finance. It is expected to deploy £50 mln (EUR 57 mln) over three years into mezzanine loans.
Pluto Capital and Mountgrange have launched a new fund to help finance residential developments in London and the south-east of England. The fund was established through Mountgrange's real estate opportunity fund MoREOF and will be managed by Pluto Finance. It is expected to deploy £50 mln (EUR 57 mln) over three years into mezzanine loans.
Pluto and Mountgrange have identified a funding gap in the residential market. This sector has been significantly affected by the tougher conditions for bank financing since the credit crunch impacted the market in 2008. The number of private residential developer units has dropped between 2007 and 2010 from 200,000 to 90,000 units per year. At the same time, population growth and increasing household fragmentation is expected to increase the number of residential projects in the UK at an average of 252,000 units each year until 2031.
Pluto Capital operates in five European countries as an investor, asset manager and developer. The business was founded in 2004. Pluto Finance has been established to manage the new fund and is jointly-owned by Pluto and MoREOF
Mountgrange Investment Management is an independent UK property fund and asset manager. Mountgrange manages the Mountgrange Real Estate Opportunity Fund (MoREOF) with committed capital of £300 mln. With debt, MoREOF has acquisition capacity of £600 mln.
