Pluto Finance provides residential development finance for development in Tufnell Park
The loan, to a 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 stretched senior loan business to provide much-needed finance for housing developments in London and the south of England.
Pluto Finance’s stretched senior debt platform is backed by Blackstone, Clearbell Capital and a number of well known 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 site is located in Tufnell Park and aimed at owner occupiers. The Tufnell Park development will provide 6 much needed family houses and an apartment.
Chris Philp, CEO of Pluto Finance, said:
“Our stretched senior business continues to prove popular with residential developers who have lost trust in the traditional banking model. By providing high gearing, a quick turn around and a single point of contact we are able to assist with the development of residential schemes that may not have been viable without our facilities.”
“We were happy to complete the financing of the North London transactions for an entrepreneurial property developer quickly and smoothly. By understanding the fundamental drivers of demand in the areas we are able to provide high leverage funding whilst maintaining a high credit quality.”