The partnership will focus on whole loan lending between £25m and £100m, with an initial target to provide £2bn over two years. This will combine the expertise and scale of BREDS with Pluto’s borrower network in the mid-market lending space.
This will be targeted at development and investment loans, primarily focused on the logistics and living sectors such as rental and for-sale housing, purpose-built student accommodation (PBSA) and co-living.
Justin Faiz, CEO of Pluto Finance, said: “We are very excited to partner with BREDS as we expand our real estate lending platform across the UK and into continental Europe.
“The combination of Pluto’s specialist expertise paired with BREDS’ scale and resources positions us strongly to bring highly flexible, institutional-grade private credit solutions to real estate owners and developers.”
Ciaran Singh, managing director for Europe at Pluto Finance, added: ”We are seeing significant demand from borrowers across Europe for private credit funding to support investment in mid-market property assets and developments across multiple sectors. This hugely exciting partnership with BREDS means that we will be able to harness Pluto’s origination, structuring and management expertise to deliver debt solutions to meet this growing demand.
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“Our in-country teams have deep knowledge of our core continental European target markets, and we look forward to building on our strong track record in the UK, where Pluto has lent nearly £3.4bn across more than 300 transactions.”
David Gorleku, head of BREDS Europe at Blackstone, said: “Pluto Finance has an established and successful track record in small-to-medium balance real estate lending, and we are excited to partner with them to bring institutional capital to an otherwise under-served market.
“As a platform, we continue to broaden our investment approach, and we view this as an attractive opportunity to expand our lending capabilities into the mid-market segment, where we see compelling relative value.”
