To complement its current mezzanine finance offering, a specialist lender has launched a new senior loan product for larger residential development projects.
Pluto Finance, the specialist residential development lender, has revealed the details of its new product, which can provide between £10 million and £30 million for residential projects and is able fund up to 90 per cent of costs or 70 per cent of GDV.
This is in addition to Pluto’s existing mezzanine loans for smaller projects (up to £10 million of total costs), which continues to go from strength to strength.
|
|
Stretch Senior Funding (single loan funding whole project) |
Mezzanine Funding (sits behind traditional senior loan) |
|
Total project costs |
£11m - £33m |
£3m - £11m |
|
Loan size |
£10m - £30m |
£1m - £5m |
|
Max loan to cost |
90 per cent |
90 per cent |
|
Min developer’s equity |
- |
10 per cent |
|
Max LTV |
70 per cent |
70 per cent |
|
Charge |
First |
Second |
|
Planning needed |
Full consent |
Full consent |
|
Locations |
London and The South |
London and The South |
|
Unit types suited |
Flats, family houses, high value houses |
Flats, family houses, high value houses |
|
Developer track record |
Strong |
Strong |
Andy Blenkisop, Partner at Pluto Finance, told B&C: “There’s a gap in the market for funding larger residential development schemes with a GDV of over £15 million in the South of England.
“There are very few funders that will go to that level of gearing for developments of that value.”
Pluto is backed by private equity investors and was shortlisted by Property Week as “Residential Lender of the Year” in 2012 alongside Barclays, Santander and Investec.
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