Specialist lender Pluto Finance has received a £30m investment from the London Treasury Liquidity Fund (LTLF), an investment fund managed by London Treasury, to support the delivery of affordable housing.
Pluto Finance, which provides senior development and bridge lending across the UK, will support SME housebuilders in the UK in contributing to the government’s plan to deliver one-and-a-half million new homes in the next five years.
Other investors include the Universities Superannuation Scheme, also a major shareholder in Pluto, pension funds and other institutional investors from across Europe.
The lending will be focused on London and the South East, including a loan that recently closed to finance a housing association’s development of 91 affordable homes and one commercial unit in Dagenham.
LTLF is designed for local authorities and public sector bodies who seek a higher level of return than SONIA or an average money market fund.
It is open to new investors and allows borrowers who are only able to secure short-term finance to access longer-term solutions.
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Richard Tomlinson, deputy chief investment officer at London Treasury, said: “We are delighted to have had the opportunity to invest £30m with Pluto Finance. We expect this investment to deliver a secure risk-adjusted return in excess of the portfolio’s benchmark at the same time as supporting the construction of new housing stock.
“As a fund, we are at an exciting stage. Our performance since inception in April 2023 has exceeded current benchmarks, and our operations have scaled sufficiently to welcome new investors who are eager to partner with us.”
Robert Swift, head of investor relations at Pluto Finance, added: “We are delighted to be working with the team at London Treasury and are aligned with their investment aim – competitive financial returns and the delivery of much-needed affordable housing across the UK.
“In addition to new homes, lending in London and the South East delivers local investment and SME job creation.”
Pluto Finance also secured investment from Wales Pension Partnership to deliver affordable homes in Wales as part of its expansion into the country.
