Hilltop Credit Partners has announced a new partnership with MCAP Global Finance (UK) LLP, and have provided a £33m loan for newbuild residential development in Worcester
The newbuild residential development will be part of Phase I of the Sherriff’s Gate development in Worcester City Centre.
The planned Sheriff’s Gate development is a multi-phase, mixed-use scheme that will consist of 469 apartments, 40,000 sq. ft. of commercial and retail space, a 200-room hotel, several restaurants, 10-pin bowling lanes, a cinema, a gym, and nearly 1,000 new parking spaces.
The development is part of the Worcester City Masterplan to build over 3,000 new homes, 9 new parks, squares and public spaces, 8,600 new jobs, 14km of new cycle infrastructure, and the restoration of 8 historic buildings.
‘Providing funding for new homes across the UK’
Paul Oberschneider, CEO of Hilltop Credit Partners, commented: “Over the past two years, Hilltop has been an active player in the UK development lending market, supporting SME residential developers and providing funding for new homes across the UK.
“Our partnership with Marathon, one of the world’s leading institutional credit managers, will allow us to fund larger developments with whole loans of up to c. £100m.”
‘Early movers in the regeneration of Worcester City Centre’
Jon Braidley, senior managing director at MCAP Global Finance (UK) LLP added: “We are delighted to partner with Hilltop Credit Partners to fund the Sherriff’s Gate development, as early movers in the regeneration of Worcester City Centre.
“Leveraging MCAP and Marathon’s extensive multi-decade track record in real estate and global credit markets, we look forward to identifying additional funding opportunities in the attractive UK residential development lending market together with Hilltop.”
The newbuild residential development will provide affordably priced housing in Worcester
Mohith Sondhi, senior director of Debt Finance at OakNorth Bank, added: “We are pleased to be continuing our long-standing relationship with Hilltop Credit Partners to provide senior financing for Sherriff’s Gate, which will provide affordably priced housing in the historic West Midlands city of Worcester, delivered by an experienced local developer.
“We look forward to working on additional transactions with the Hilltop team.”
A transformative effect on Worcester’s City Centre
Stennard Harrison, CEO of Sherriff’s Gate Limited, stated: “We are excited to be breaking ground on a development site we have been assembling for over 30 years.
“With a footprint of over 7 acres, the Sherriff’s Gate development will have a transformative effect on Worcester’s City Centre.
“Given the strong local housing demand, and the lack of affordable housing supply that has been delivered over the past decade, we believe there will be strong uptake for Phase I units from both owner-occupiers and buy-to-let landlords. It has been a pleasure to work with the Hilltop team whose deep understanding of development finance allowed us to successfully complete this complex transaction.”
