Pluto Finance has agreed to lend £17.2 million (approx. €20.9 million) for the development of 53 houses and apartments in Bushey, Hertfordshire.
The loan to an experienced local developer is in the form of stretched senior residential development finance, combining senior and mezzanine debt. It has been provided by Pluto Finance’s £360 million (approx. €437.6 million) stretched senior loan business to provide much-needed finance for housing developments in London and the south of England.
The business is backed by Blackstone, Clearbell Capital and a number of institutional investors. 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.
The development at Bushey, which has a gross development value of £26 million (approx. €31.6 million), is located on the site of a derelict health centre. It will comprise 31 apartments and 22 houses, totalling 65,500 ft² (approx. 6,085 m²).
Chris Philp, CEO of Pluto Finance, said: “Our stretched senior business is finding good traction with residential developers, who continue to find it difficult to source adequate funding for their schemes.
“For Bushey, 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".
Source: Pluto Finance