The London Treasury Liquidity Fund (LTLF), managed by the Greater London Authority’s London Treasury, has announced a £30 million investment in private real estate debt. This strategic move aims to support senior development and bridge lending across the UK, with a key emphasis on funding affordable housing projects.
Pluto Finance, a UK-based specialist real estate private debt manager, will be responsible for managing the £30 million investment. The deal is part of a broader effort to back small and medium-sized enterprise (SME) housebuilders, in line with the UK Government’s ambitious target of delivering 1.5 million new homes over the next five years.
The investment will predominantly focus on projects in London and the South-East of England. One notable recent loan, for example, is earmarked to finance the development of 91 affordable homes and one commercial unit in Dagenham. Other investors in the fund include the Universities Superannuation Scheme, a major shareholder in Pluto, as well as various pension funds and institutional investors from across Europe.
LTLF, which is designed for local authorities and public sector bodies seeking higher returns than typical short-term money market funds, aims to offer secure, risk-adjusted returns. The fund is structured to accommodate investors with fluctuating cash flows, enabling them to access longer-term investments that might otherwise be out of reach.
Richard Tomlinson, Deputy Chief Investment Officer at London Treasury, expressed optimism about the investment’s potential. “We expect this investment to deliver a secure risk-adjusted return exceeding our portfolio’s benchmark, while simultaneously supporting the construction of new housing stock,” he stated.
Since its inception in April 2023, LTLF has already outperformed current benchmarks, prompting an expansion in investor interest. “Our operations have scaled sufficiently to welcome new investors who are eager to partner with us,” Tomlinson added.
Robert Swift, Head of Investor Relations at Pluto Finance, highlighted the partnership’s mutual alignment in both financial goals and social impact. “We are delighted to be working with London Treasury, focusing on competitive returns and the delivery of much-needed affordable housing across the UK. Additionally, lending in London and the South-East not only contributes to new housing but also promotes local investment and job creation for SMEs.”
The latest move marks a significant step in fostering public-private collaboration to tackle housing challenges and stimulate economic growth through targeted real estate investments.
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