Hilltop Credit Partners, a UK-based specialist development funding partner, has secured investment from Metropolitan Real Estate, the global real estate multi-manager platform.
As part of this, Hilltop will target to deploy up to £300m over the next three years to finance the construction of over 1,000 new residential units across the UK, with a focus on affordable regional markets with strong supply-demand fundamentals.
The investment provides Hilltop with an immediate opportunity to grow its existing UK residential development finance platform. An investment of this type is critical to achieving the UK government’s target of delivering 300,000 new homes per year.
Hilltop believes that UK residential development lending has fallen up to 40% since 2008, as high-street banks have withdrawn from the market due to new regulatory capital requirements and the impact of Covid-19. The UK could therefore face a funding gap of c. £200 billion that will need to be covered over the next decade in order to achieve the government’s housebuilding targets.
Paul Oberschneider, Founder and CEO of Hilltop Credit Partners, said: “I’m delighted to announce this partnership, which further establishes Hilltop as a leading player in the UK development lending market. Working with Metropolitan Real Estate will bring together our collective experience in real estate and credit to support proven housebuilders in the UK, and to promote greater housing supply. This partnership is a validation and recognition of our work so far, and we look forward to growing our lending portfolio across Britain this year.”