GLA subsidiary makes £30m investment to support affordable housing delivery

Other investors include the Universities Superannuation Scheme, also a major shareholder in Pluto, pension funds and other institutional investors from across Europe. The funding commitment will support small and medium-sized (SME) house builders across the UK.

Pluto was established in 2011. Its lending vehicles provide bridge, development and investment finance for property developers and investors throughout the UK. They have provided over £3bn across 273 loans, financing the delivery of more than 10,000 new homes.

Robert Swift, head of investor relations at Pluto, said: “We are delighted to be working with the team at London Treasury and are aligned with their investment aim: competitive financial returns and the delivery of much-needed affordable housing across the UK.

“In addition to new homes, lending in London and the South East delivers local investment and SME job creation.”

For its part, London Treasury also provides discretionary portfolio management to professional clients and strategic advice on debt management to clients as part of the GLA’s shared treasury management service.

This includes its green-finance services, such as carbon impact analysis and project appraisal, which are at the heart of London’s ambition for the city to be net zero carbon by 2030.

Richard Tomlinson, deputy chief investment officer at London Treasury, said: “We are delighted to have had the opportunity to invest £30m with Pluto Finance. We expect this investment to deliver a secure risk-adjusted return in excess of the portfolio’s benchmark at the same time as supporting the construction of new housing stock.

“As a fund, we are at an exciting stage. Our performance since inception in April 2023 has exceeded current benchmarks, and our operations have scaled sufficiently to welcome new investors who are eager to partner with us.”