Blackstone and Pluto Finance partner to invest £2bn in property developments in the UK and Europe

Specialist development and bridging lender Pluto Finance has partnered with Blackstone Real Estate Debt Strategies (BREDS) to provide funding solutions to real estate owners and developers in the UK and continental Europe. The partnership will focus on whole loan lending between £25 million and £100 million, with an initial target to provide £2 billion over two years, combining BREDS’ expertise and scale with Pluto’s borrower network in the mid-market lending space.

The funding will target development and investment loans primarily focused on logistics and living sectors including rental and for-sale housing, purpose-built student accommodation, and co-living. The partnership aims to bring institutional-grade private credit solutions to an under-served mid-market segment where Pluto has already established significant presence, having lent nearly £3.4 billion across more than 300 transactions in the UK.

“We are very excited to partner with BREDS as we expand our real estate lending platform across the UK and into continental Europe,” said Justin Faiz, CEO of Pluto Finance. “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.”

David Gorleku, head of BREDS Europe at Blackstone, emphasized the strategic value of the partnership: “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.”

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