What was The Buzz in September?
Our monthly roundup of real estate industry news.
Here are a few of the stories that caught our attention in September. With a number of new schemes and developments being given the green light, it’s all systems go in the commercial real estate industry.
Blackstone and Pluto launch £2bn real estate lending platform
Specialist development and bridging lender Pluto Finance has partnered with Blackstone Real Estate Debt Strategies (BREDS) to provide funding solutions to real estate owners and developers in the UK and continental Europe. The partnership will focus on whole loan lending between £25 million and £100 million, with an initial target to provide £2 billion over two years, combining BREDS’ expertise and scale with Pluto’s borrower network in the mid-market lending space.
The funding will target development and investment loans primarily focused on logistics and living sectors including rental and for-sale housing, purpose-built student accommodation, and co-living. The partnership aims to bring institutional-grade private credit solutions to an under-served mid-market segment where Pluto has already established significant presence, having lent nearly £3.4 billion across more than 300 transactions in the UK.
Ciaran Singh, managing director for Europe at Pluto Finance, added: “We are seeing significant demand from borrowers across Europe for private credit funding to support investment in mid-market property assets and developments across multiple sectors.”
How the Flex Market has Shifted Since 2024, according to GCUC
Last October in London, the conversation was alive with predictions. Operators needed to double down on brand. People would always be the competitive edge. Design had to go deeper than shiny amenities. Fast forward to today, and those predictions are no longer theory. They are the reality shaping the market.
In 2024, the advice was clear: brand would make or break an operator. In 2025, it is already happening. Search has changed. AI-driven results reward clarity and authenticity, which means smaller independents with a strong voice are finally competing head-to-head with the big names. Operators who hide behind generic branding are disappearing from view.
Castleforge and Conversant Capital form new £1bn+ Central London office investment partnership
Castleforge and Conversant Capital have formed a partnership to invest more than £1bn in Central London office assets over the coming years.
Affiliates of Conversant have committed an initial £150m to Castleforge Partners V (Special Opportunities Fund), which is designed to invest across the capital structure, including both equity and credit positions as well as joint ventures.
The fund, acting as a credit provider, recently closed on the £90m recapitalisation of the 162,000 sq ft 55 Mark Lane multi-let office asset in the City of London’s EC3. Proceeds will refinance the existing mortgage and fund a capital improvement plan with Castleforge serving as lender, asset manager and development manager.
The fund has also acquired a secondary interest in 75 London Wall (pictured), Castleforge’s 500,000 sq ft office redevelopment project.
Michael Kovacs, founding partner at Castleforge, said: “I’m excited to be working with Michael and his team. Our two organisations have a lot of overlapping relationships and think very similarly about investing.Central London remains one of the most dynamic office markets in the world, yet the imbalance between supply and demand is now more pronounced than ever.”
UK hotel investment up 28% year-on-year in Q3 2025
UK hotel investment is estimated to have increased by 28% year-on-year in Q3 2025, according to new data from Savills.
In the third quarter, deals totalling £1.04bn completed driven by single asset transactions, which accounted for 92% of activity. London led the hotel investment market in Q3, with volumes reaching £697m – up 42% year-on-year. London prime yields tightened by 25 basis points across franchise assets compared with H1 2024. Domestic owner-operators have dominated UK hotel acquisitions in 2025 to date, accounting for 45% of volumes. This is up 4% year-on-year and marks a 77% increase compared with the 10-year average.
Homes England forms £150m joint venture with Countryside Properties
Homes England and Countryside Properties, part of Vistry Group, have formed a £150m long-term joint venture to accelerate the development of large residential sites across England.
The new vehicle, which has been named Hestia, will focus on identifying sites to bring forward new infrastructure and manage the construction of new communities of between 400 and 3,000 homes.
Matthew Pennycook, housing and planning minister, said: “Rapidly growing the pipeline of large mixed tenure sites across the country, making more use of modern methods of construction, and backing SME housebuilders are all essential to achieving our Plan for Change target of building 1.5 million homes in this Parliament. By mobilising private capital alongside government investment, this significant new joint-venture will bring forward more high quality, mixed-tenure developments and deliver thousands of new homes to buy and rent.”
