The London Treasury Liquidity Fund (LTLF) has announced a £30 million investment into private real estate debt, aimed at providing senior development and bridging finance across the UK, with a strategic focus on affordable housing.
The capital will be deployed through Pluto Finance, a specialist UK real estate private debt manager.
Other key investors include the Universities Superannuation Scheme – a major shareholder in Pluto – alongside pension funds and institutional investors from across Europe.
This commitment directly supports SME housebuilders, a crucial component of the government’s plan to deliver 1.5 million new homes over the next five years.
AFFORDABLE HOMES
Lending will be concentrated in London and the South East, with a recent loan closing facilitating a housing association’s development of 91 affordable homes and a commercial unit in Dagenham.
LTLF, managed by London Treasury, is designed for local authorities and public sector bodies seeking higher returns than SONIA or typical money market funds.
While individual investors with fluctuating cash flows may be limited to short-term instruments, LTLF enables collective participation in longer-term investments. The fund, which launched in April 2023, is now open to new investors.
HOUSING CREATION
Richard Tomlinson, Deputy Chief Investment Officer at London Treasury, says: “We are pleased to invest £30 million with Pluto Finance. This partnership not only strengthens our portfolio’s risk-adjusted returns but also supports the creation of much-needed housing stock.
“Our fund’s performance since inception has exceeded benchmarks, and we are at a stage where we can welcome new investors seeking both solid financial returns and positive social impact.”
COMPETITIVE RETURNS
Robert Swift, Head of Investor Relations at Pluto Finance, adds: “Collaborating with London Treasury aligns perfectly with our dual mission – delivering competitive returns while driving the development of affordable housing across the UK.
“Beyond building homes, our lending activity in London and the South East stimulates local investment and SME job creation.”
