Pluto Finance has announced the successful completion of a £25m loan agreement with HGP for the development of a Build-to-Rent project in the city of Leicester.

Pluto Finance, a leading development finance provider, has confirmed its second loan agreement with the Housing Growth Partnership (HGP) for the development of a Build to Rent (BTR) project in Leicester city. The £25m loan will fund a significant residential development in the East Midlands by Monk Estates, a renowned real estate company.

The project is a synergistic collaboration between four parties – Pluto Finance, HGP, Monk Estates, and the prominent debt and equity advisory group MAF Finance Group. The funds will be critical in aiding the transformation of an Edwardian factory and the erection of two new build apartment complexes.

“We are eager to join forces with HGP and MAF Finance Group in this BTR venture led by Monk Estates in the Midlands. The refurbishment of the factory along with the new apartment buildings will create a unique living space, contributing to ongoing urban regeneration and meeting the demand for such city centre residences,” said Evan Griffin, Lending Director at Pluto Finance.

The team at Pluto Finance is delighted to back this development in Leicester, which aligns with their commitment to endorse innovative and sustainable projects in the BTR sector. The refurbished four-story Edwardian hosiery factory will be transformed into a modern residential complex, melding the historical integrity of the building with modern living.

Mike Murphy, Investment Director at Housing Growth Partnership (HGP), said, “We are thrilled to back Monk Estates, our new and highly experienced partner, in delivering HGP’s inaugural BTR project in the East Midlands. Our £5.7m investment will enable Monk Estates to provide much-needed rental housing in a prime Leicester City Centre location. The Highcross development will substantially aid the ongoing regeneration in the area, making it even more appealing to the target rental demographic.”

In addition to the factory, two interconnected BTR apartment buildings will be constructed to complement the existing structure and amplify the architectural appeal of the development. The completed development by Monk Estates will house 171 residential units.

Sam Monk, Director at Monk Estates, said, “We are delighted to collaborate with Pluto Finance on this project. Their assistance and proactive approach in this ever-changing debt market is refreshing. We are grateful to MAF Finance Group for their support and look forward to future collaborations.”

A Sainsbury’s Local commercial unit will serve the residents and the local community, contributing to the project’s vibrancy and economic value. The development will offer contemporary residential amenities, green spaces, and a sense of community within a historical backdrop.

Dave Chapman, Managing Director at MAF Finance Group, commented, “Both Paul Delaney and I are thrilled to have arranged the debt and introduced the client to HGP and Pluto, and to have worked with all parties to orchestrate this exciting deal. This is the second transaction we have assisted Robert and Sam Monk with in the BTR sector, and we eagerly anticipate the progress of the Hylyfe Leicester scheme.”

Earlier this year, Pluto Finance finalized another investment deal, worth £18m, with Arc & Co., for a private residential developer undertaking two BTR projects in the South East of England.