Pluto Finance has completed a £20m gross development facility for Legacy Properties to support the construction of 80 homes at Trispen near Truro, alongside a £2.5m equity investment from Lloyds Banking Group-backed Housing Growth Partnership.
The funding relates to The Paddocks, a scheme in Cornwall that will provide 53 open market homes and 27 affordable units.
The development will comprise a mix of three, four and five-bedroom detached and semi-detached houses and bungalows, with the affordable homes being delivered in partnership with a registered provider.
Pluto said it had first supported the borrower with a land bridge facility to acquire the site before going on to structure the senior development loan for the build phase.
The transaction was introduced by Rickesh Patel of Mantra Capital. Legal advice was provided by Glovers, while MDA and Savills also advised.
According to the parties involved, the homes are being designed to achieve high EPC ratings and will include air-source heat pumps, electric vehicle charging infrastructure and solar panels.
Jonathan Scott, lending director for the South West at Pluto Finance, says: “We were pleased to support Legacy Properties from initial land acquisition through to full development funding.
“Working alongside Lloyds Banking Group-backed HGP, we structured a senior facility that aligned with the build programme and capital stack requirements of the joint venture.
“The scheme provides a balanced mix of open market and affordable housing in an undersupplied regional market and reflects continued demand for flexible senior development finance.”
Alex Maltby, investment director at Housing Growth Partnership, says: “This latest investment extends our UK footprint into the South West where there is a structural shortage of housing and where we can make a real impact through our equity commitments.
“With more traditional funding routes remaining off the table for many developers, innovative solutions like ours are critical in supporting new housing delivery.”
Nick Long, managing director of Legacy Properties, adds: “The Paddocks at Trispen is a scheme shaped around local housing need, with a strong community focus and we are pleased to be working with partners that shares our long-term view for creating great quality family homes in Cornwall.”
