Hilltop Credit Partners completes £18.3m loan for Lincolnshire residential scheme
Funds advised by Hilltop Credit Partners, a specialist funding partner for SME residential developers, have completed a £18.3m loan to Yeung Property Group for the development of 86 residential houses and flats in New Waltham, on the outskirts of Grimsby, Lincolnshire.
The project will deliver 86 houses with private outdoor space and parking facilities, together with 18 flats priced below regional Help To Buy thresholds. The site consists of 2.5 hectares of agricultural land 2 miles from the centre of Grimsby and c. 10 miles from Immingham – part of the UK’s largest docks by tonnage and earmarked for significant development to become a key producer of sustainable electricity generation in the UK’s “Energy Estuary.”
The local housing market has been active in recent years, though overall prices have remained relatively affordable, with the average price of £161,277 sitting significantly below the national average of £256,000. Demand for newbuild, quality stock, however, is high, and the development has a waiting list of buyers created from the completion of a nearby pre-sold 160-unit scheme by the same developer.
Grimsby is set to receive £40m of government funding for leisure and retail regeneration projects, whilst the Northern Powerhouse project is providing gap funding to strengthen the role of Cleethorpes town centre as the key driver of Northeast Lincolnshire’s tourist economy.
The project sponsor is a local developer with over 20 years’ experience who has delivered several successful schemes across Northern England. The in-house construction team brings a wealth of local experience including the 160-unit Clee Meadows regeneration project.
Paul Oberschneider, founder and CEO of Hilltop Credit Partners, commented: “This is a large development in a region with decent affordability. The development team has impressive experience in and around the location, including high volume sales. New Waltham should perform well and follow the success of YPG’s nearby Clee Meadows scheme.”
Ming Yeung of YPG added: “We have been working towards this project with Hilltop for some time. They have demonstrated a thorough, methodical and patient understanding of the complexities encountered during the planning period, so it’s pleasing to be able to progress with them.”