Housing developer Pocket Living has secured a £19.3m debt facility with Pluto Finance against its recently completed Addiscombe Grove development in Croydon
The new facility represents Pocket Living’s second funding partnership with Pluto Finance, which is a 12-month facility structured by LEXI Finance. The debt facility 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 the Addiscombe Grove development are delivered as a joint venture between Pocket and housing association Optivo.
The 112 one-bedroom Pocket apartments are available to first-time buyers who live or work in London and earn under the Mayor of London’s income threshold for affordable housing.
The Addiscombe Grove development apartments are available from £260,000 – a minimum of a 20% discount to the local market, and purchasers own 100% of their property.
The development was completed in March 2022, and 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.
Helping people to gain access to the property ladder
Paul Rickard, chief financial officer at Pocket Living, commented: “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.”
‘Affordable houses for local people’
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.”
The deal follows Pocket obtaining a 12-month £6.6m debt facility with Pluto Finance in September 2021, which was secured against its Harbard Close asset in Barking.