Wales Pension Partnership (WPP) has made a real estate debt investment with Pluto Finance so it can develop affordable housing in Wales.
The specialist development and bridging lender has set an initial target of £30m of lending this year as part of its expansion into Wales.
Pluto Finance is working with WPP, which is a collaboration of the eight Local Government Pension Scheme (LGPS) funds serving the country, to deliver capital ring-fenced for deployment in Wales. It will focus on funding housebuilders and developers to deliver local, affordable housing.
WPP will make its investment through Pluto Finance’s local impact programme, which allows LGPS Funds and Pools to provide placed-based investment and local impact while maintaining its diversification to a national loan portfolio.
Cllr Elwyn Williams, chair of the Joint Governance Committee, on behalf of the Wales Pension Partnership, said: “The Wales Pension Partnership is committed to providing productive capital into Wales and we are delighted to have found a solution that delivers both in financial and local impact terms.
“This investment made through our private debt allocator, Russell Investments, will look to support both the Welsh economy and the affordable housing needs of our local community.”
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Ashley Manning-Brown, head of UK investor solutions at Pluto Finance, said: “We are thrilled to be working with the Wales Pensions Partnership, to help them deliver a step change in local, affordable housing.
“By utilising our innovative approach to place-based investment, the WPP will be supporting local communities and their housing needs, while delivering investment and SME job creation into the region.”
