Property Development Funding:- A new lender offering finance for small to mid-sized residential property developers has entered the market.
Hilltop Credit Partners plans to lend more than £125m over the next 12 months to developers who have a proven track record but need greater access to capital.
Global real estate investment firm Round Hill Capital is backing Hilltop, which already has experience in property development, asset management and financial structuring in the UK and Europe.
Hilltop Credit Partners founder and chief executive Paul Oberschneider was upbeat about the new venture.
“Hilltop is an agile and entrepreneurial team with significant financial firepower to deploy, and the industry expertise and reach required to move quickly to fund the delivery of more new homes in the UK. We have been significant developers ourselves and we understand development risk and market cycles.”
New lender gets off to a strong start
Hilltop Credit Partners has a near-term launch pipeline of over £40 million to fund residential schemes in various UK locations, including Windsor, York and the Midlands.
The lender is offering tailored one-stop funding for up to 90 per cent loan-to-cost, with loans from £3m to £20m. Hilltop said it would move quickly to offer developers the funding they need to seize opportunities, eliminating the uncertainty and costs associated with multiple sets of legal and professional documents.
Round Hill Capital argues that the UK’s residential housing market suffers from supply and demand imbalances as well as development funding shortfalls. Round Hill has a 17-year track record of investing in residential markets across Europe identifying opportunities to deliver quality housing.
Round Hill Capital founder and chief executive, Michael Bickford, said his company was pleased to be entering the UK market.
“We are confident that our combined sector and industry knowledge, expertise, industry networks, committed capital and ability to deliver will prove invaluable to proven SME house builders in the UK in need of attractive funding solutions to build the significant additional housing that the UK needs.”
Finance advisors Hank Zarihs Associates maintains that more lenders offering property development funding and short-term bridging loans is essential for creating a competitive market.
Since its inception in 2002, Round Hill Capital has acquired and repositioned itself for long-term institutional ownership of over 110,000 residential units and student housing beds. Round Hill offers housing to a range of occupants, from students to senior citizens.
