Arc & co and Pluto Finance have completed on two development-to-investment loans, totalling €20.3m (£18m), to a private residential developer. The new facilities will enable the development of two residential build-to-rent assets, followed by an investment loan for longer-term holding on completion of construction. Located in the South East of England, the two schemes will provide a total of 181 residential units. The loans have been arranged at a loan-to-value ration of 60%, with the development investment finance secured at market-leading pricing on a three-year term.
Cameron Hayes, asset finance adviser at Arc & Co., said: “Build-to-rent continues to be a key focus for lenders, attracting some on the most competitive financing. It is great to complete on these two facilities with a bespoke funding solution that not only reduces costs but is also in line with the long-term strategies of both Pluto and the client. We look forward to working with them both on future opportunities.”
Guy Norman, lending director at Pluto Finance, added: “we can now finance the entire lifecycle of a BTR scheme by adding stabilisation & investment financing to our existing development offering. This product gives our clients peace of mind (that they have funding secured for the whole project), saves time overall and avoids additional refinance costs (including arrangement and legal fees) once the assets flip from development into becoming a standing investment. It was a pleasure to work with Arc & Co and the developer.”