Pluto Finance completes £20m development loan alongside HGP

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Trispen Cornwall

Pluto Finance has completed on a loan with Legacy Properties to provide a £20m gross development facility to fund the construction of 80 new family homes in Trispen near Truro, Cornwall.

The senior loan sits alongside a £2.5m equity investment from Housing Growth Partnership, the equity investor backed by Lloyds Banking Group.

The scheme, known as The Paddocks, will deliver 53 open market homes and 27 affordable units, with a mix of three, four and five-bedroom detached and semi-detached houses and bungalows, with the affordable homes delivered in partnership with a registered provider.

Pluto initially supported the borrower with a land bridge facility to acquire the site and subsequently structured the senior development facility to support delivery of the scheme.

The transaction was introduced by Rickesh Patel of Mantra Capital and legal advice was provided by Glovers, with MDA and Savills also advising.

All homes are being designed to achieve high EPC ratings, incorporating green technologies including air-source heat pumps, EV charging infrastructure and solar panels

Jonathan Scott lending director for the South West, who arranged the loan at Pluto Finance, said:

“We were pleased to support Legacy Properties from initial land acquisition through to full development funding.

Working alongside Lloyds Banking Group-backed HGP, we structured a senior facility that aligned with the build programme and capital stack requirements of the joint venture.

The scheme provides a balanced mix of open market and affordable housing in an undersupplied regional market and reflects continued demand for flexible senior development finance.”

Alex Maltby, investment director at Housing Growth Partnership, said: 

“This latest investment extends our UK footprint into the South West where there is a structural shortage of housing and where we can make a real impact through our equity commitments.

With more traditional funding routes remaining off the table for many developers, innovative solutions like ours are critical in supporting new housing delivery.”

Nick Long, managing director of Legacy Properties, added:

“The Paddocks at Trispen is a scheme shaped around local housing need, with a strong community focus and we are pleased to be working with partners that shares our long-term view for creating great quality family homes in Cornwall.”

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