Pluto Finance deploys £8.9 million to deliver low-carbon family homes in west Wales
Pluto Finance, a leading provider of private credit for property investment and development, has completed its first two residential development loans in Wales from the WPP investment sleeve totalling £8.9 million. These will facilitate the delivery of 56 energy-efficient homes across Ceredigion and Pembrokeshire for local people. Both schemes are being constructed by Obsidian Homes and reflect Pluto’s strategic ambition to support regional housing growth through borrower-friendly, ESG-aligned finance.
The first loan for £4.35 million, supports Phase One of a 37-home development in Llanarth, Ceredigion, near a coastal resort where many second and holiday properties are located. This initial scheme will deliver 16 open-market and five affordable homes. The latter will be sold at 70% of open market value to eligible local buyers, including those working in key roles such as healthcare, education, and emergency services. Phase Two includes a further 14 open-market homes and two affordable units and will commence once sales of Phase One have progressed.
The second loan, a £4.57 million facility, funds a new development in Kilgetty, Pembrokeshire, comprising 15 open-market homes available for local families, and four affordable apartments which the local council will acquire. This site is already under construction, with Pluto stepping in at short notice to complete the lending package in just two weeks following formal credit approval.
The local councils for both loans have been highly supportive of schemes that prioritise affordability, local employment and the provision of undersupplied new family homes.
Both developments are designed with strong environmental credentials – timber-frame construction, EPC A ratings, PV panels and low-carbon heating solutions. Lifetime carbon reductions could be as high as 92%, according to the developer. The initial phase of properties is expected to be completed in around 18 months’ time, with a further six months earmarked for sales. Obsidian Homes is already seeing strong demand, with two homes reserved before formal marketing has started.
Jonathan Scott, Lending Director at Pluto Finance, commented: “These developments are the type of projects Pluto is proud to support; high-quality, low-carbon homes for local families in places that need them. We’re particularly pleased to be backing Obsidian, a borrower that shares our values, and to play a role in addressing the imbalance between second homes and permanent residences in these communities. We are delighted that our flexible approach and strong understanding of the local market has resulted in a second mandate being quickly secured as we continue to fill a buoyant and growing lending pipeline across Wales.”
Paul Rees from Obsidian Homes said: “Working with Pluto has been a seamless experience from start to finish. The team was highly flexible and pragmatic throughout, demonstrating its borrower-first approach and enabling us to proceed with these important developments in West Wales. Pluto has proved to be a dependable funding partner and we look forward to working with the team to finance future developments.”
The loans reflect Pluto’s broader commitment to local regeneration and economic development, creating jobs, generating long-term council tax revenues, and contributing to placemaking in under-served areas.
