Pluto Finance, the residential development lender, has agreed to lend £17.2 mln (€21 mln) for the development of 53 houses and apartments in Bushey, Hertfordshire, UK.
Pluto Finance, the residential development lender, has agreed to lend £17.2 mln (€21 mln) for the development of 53 houses and apartments in Bushey, Hertfordshire, UK.
The loan is in the form of stretched senior residential development finance, combining senior and mezzanine debt. It has been provided by Pluto Finance’s £360 mln stretched senior loan business which is backed by Blackstone, Clearbell Capital and a number of institutional investors.
The platform 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.
The development at Bushey, which has a gross development value of £26 mln, is located on the site of a derelict health centre. It will comprise 31 apartments and 22 houses, totalling 65,500 sq ft (6,085 m2).
Chris Philp, CEO of Pluto Finance, said: 'We were happy to complete the financing transaction quickly so as to enable our client to acquire the site and then move into the development phase straightaway. There is a shortage of good value family housing in London and the south, and we are happy to provide the funding to increase the supply.'
Established in 2004 by Chris Philp and Justin Faiz, Pluto Capital operates in the UK and Europe. In the UK, the company provides residential development finance for developers through Pluto Finance. In southeastern Europe the company manages a development fund, Pluto Developments, which is active across a range of sectors – from city centre residential and coastal holiday homes to retail and commercial projects.
