Hilltop Credit Partners has launched into the development finance market targeting proven small and mid-sized residential property developers and housebuilders across the UK.
The lender is backed by Round Hill Capital and aims to lend more than £125m over the next 12 months by providing funding solutions to SME developers who have track records.
It has a near-term launch pipeline of more than £40m to fund residential schemes in various locations, including Windsor, York and the Midlands.
Funding is available for up to 90 per cent loan to cost, with loans ranging from £3m to £20m.
Hilltop said it could move quickly to offer developers the funding they need to seize development opportunities, without multiple sets of legal and professional documents.
It is headed up by founder and CEO Paul Oberschneider, and claims a successful track record in property development, asset management and financial structuring in the UK and Continental Europe.
Expand development lending portfolio
Oberschneider said the joint venture intended to support greater and more affordable housing supply than what large housebuilders focus on delivering.
“We look forward to continuing to significantly expand our development lending portfolio diversified across the UK, with a target to deploy in excess of £125m over the next 12 months,” he said.
“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,” he added.
Round Hill Capital founder and CEO Michael Bickford noted that like many European countries, the UK’s residential housing market suffers from structural supply and demand imbalances and a development funding shortfall.
“We are delighted to be entering the UK real estate debt market by partnering with the highly experienced management team of Hilltop Credit Partners,” he said.
Owain Thomas is features and contributing editor of Mortgage Solutions and editor of Specialist Lending Solutions.
He also has experience in the protection, pensions, workplace benefits and HR areas.
Owain has won two Headline Money Awards and the Protection Review’s Journalist of the Year award.