Pluto Finance, the specialist residential development lender, has recently raised over c. €574m (£500m) of institutional capital to be deployed across new senior debt and bridging lending strategies as well as to relaunch Pluto’s stretch senior lending at significantly lower interest rates.
Pluto Finance aims to lend c. €574m across these three loan types in the next year. The team have hit the ground running with over €109.1m (£95m) of loan already credit approved since the capital raise. To support its growth plans, Pluto has recently hired four new staff into its lending team.
Partner Justin Faiz said “This significant capital raise provides Pluto with the firepower to continue providing market leading loans. We are now able to provide lower leverage senior debt with interest rates from 3.95% - cheaper than the challenger banks, and competitive with the clearing banks but with a much faster turnaround time.”
Pluto Finance has been lending since 2011 and is one of the leading alternative lenders for residential development, particularly for stretch senior finance. Pluto’s relaunched stretch senior loans will continue to fund up to 90% of costs, but at materially lower interest rates than previously.
Alternative lenders have taken market share from the banks over recent years offering higher leverage finance and much better customer service. Over half of Pluto’s loans are now to repeat borrowers, a proportion the team expect to grow over time with the addition of new lending products.
Justin Faiz continues “We are the only lender to offer stretch, senior and bridging finance under one roof – turning Pluto into a real one-stop-shop for all residential development finance needs. We are grateful to our new and existing institutional investors for the support they are continuing to provide to our business through this important capital raise.”
In explaining the move into bridge lending, Partner Andrew Blenkinsop adds “We are delighted to be able to support our clients throughout the entire project lifecycle by providing short term loans to assist with site acquisition pre-planning and also to refinance completed units.”
