Affordable housing developer Pocket Living has secured a £19.3 million debt facility with Pluto Finance, a leading provider of finance for property developers and investors, against its recently completed Addiscombe Grove asset in Croydon.
This represents Pocket’s second funding partnership with Pluto Finance, which is a 12-month facility structured by LEXI Finance. This deal will accelerate the deployment of the funds to support the delivery of Pocket’s future schemes, providing homes specifically for those looking to get on the housing ladder.
The 153 homes at Addiscombe Grove are delivered as a ground-breaking joint venture between Pocket and housing association Optivo. The 112 one-bedroom Pocket apartments are available exclusively to first-time buyers who live or work in London and earn under the Mayor of London’s income threshold for affordable housing. The apartments are available from £260,000 - a minimum of a 20% discount to the local market, and purchasers own 100% of their property. The remaining 41 homes will be delivered as Shared Ownership by Optivo. The joint venture presented the opportunity to deliver a 100% affordable housing development near East Croydon Station.
The development, designed by award-winning architects Metropolitan Workshop, completed in March 2022, and Pocket has already welcomed its first residents. Each apartment has access to three landscaped roof gardens as well as amenities including a residents' lounge, co-working space, a wellness room, and cycle storage.
Paul Rickard, Chief Financial Officer at Pocket Living, comments: “This £19.3 million funding agreement marks Pocket’s second deal with Pluto Finance and demonstrates their confidence in us and our model, as well as the need to continue delivering homes for those who otherwise might not be able to get on the ladder in their local area.
“We recently completed our 1,000th home at Addiscombe Grove in Croydon and, with the support from providers such as Pluto Finance, we look forward to delivering many more much-needed homes across London and beyond.”
Greg Dunne, Lending Director at Pluto Finance, added: “Pluto Finance are delighted to have completed a second Exit Bridge loan with Pocket Living, further showing our belief in their model and product but also strengthening our relationship with them. At Pluto we pride ourselves on repeat business with our clients, helping to deliver a flexible and efficient service for all their funding requirements.’’
Sam Le Pard, Director at LEXI Finance, added: “Pocket Living and Pluto were a great match, so we were glad to have structured the facility and brought these partners together. Greg and the Pluto team quickly understood Pocket’s unique model and presented incredibly competitive terms.
“LEXI are proud to have supported Pocket Living in their delivery of affordable houses for local people and are looking forward to working with both parties again in the near future.”
This deal follows Pocket obtaining a 12-month £6.6 million debt facility with Pluto Finance in September 2021, which was secured against its Harbard Close asset in Barking.