Arc & Co and Pluto Finance have completed two development-to-investment loans worth a combined £18m to a private residential developer.
Agreed at 60% LTV over a three-year term, the two facilities will support the development of two residential BTR assets followed by an investment loan for longer-term holding upon completion of construction.
The scheme, located in the South East of England, will deliver a total of 181 residential units, according to Arc & Co.
Pluto Finance said it provided the client with a bespoke development-to-investment facility on both transactions, which allowed for increased funding certainty following practical completion of the scheme while rental income is stabilising.
Cameron Hayes, asset finance adviser at Arc & Co (pictured above), remarked: “Build-to-rent continues to be a key focus for lenders, attracting some on the most competitive financing.
“It is great to complete on these two facilities with a bespoke funding solution that not only reduces costs but is also in line with the long-term strategies of both Pluto and the client.
“We look forward to working with them both on future opportunities.”
