Pluto Finance

Pluto launches streamlined stretched development finance offering

Pluto Finance has introduced a new stretched development finance product, providing a streamlined credit, legals and due diligence process.

The facility — which can be used for residential, mixed-use, new-build and conversion projects ­— offers experienced SME developers and housebuilders loans from £5m-15m.

The typical loan term is expected to be circa 21 months, with margins from 5.75%, depending on LTGDV.

“This new lending product is designed to improve existing funding options for the SME space, [so that] these developers [can] benefit from Pluto’s expertise in lending on larger, structured facilities,” said John O’Donnell, lending director at Pluto.

“With prompt decision making and a proactive completion process, the lending options will enable established developers to maximise the use of their funds, without having to resort to third-party equity providers.”

The product can be used in conjunction with the specialist lender’s bridging and development exit offerings.

Peak debt facilities will also be considered.

The company is currently funding the development of over 2,000 new homes in the UK.

In 2021, Pluto signed a new funding partnership with UK private pension fund, the Universities Superannuation Scheme, to provide funds to the nation’s SME developer market.

The private pension scheme made a significant minority investment in Pluto to enable a major expansion of the business and committed £75m as a cornerstone investor.

In March, the finance provider grew it London-based team after appointing Guy Norman as lending director.

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