Funds advised by Hilltop Credit Partners, a specialist funding partner for SME residential developers, have completed an £8.7m loan to Mitchian Alliance Limited for the development of 69 residential units in central Leicester.
The project will deliver 53 one-bed and 16 two-bed flats and a small ground-floor retail unit next to the Waterside regeneration project, just 10 minutes from the city centre and less than a mile to Leicester train station. All residential units feature bedrooms with Juliet Balconies and are priced within the government’s regional Help To Buy limits.
As part of the regeneration of the local area, which is expected to benefit from c. £80m of new investment, Leicester City Council is strictly controlling the provision of newbuild housing, creating what Hilltop believes to be a favourable supply/demand dynamic for the development.
The average price of flats in Leicester has increased by c. 13% over the last 18 months, while supply of properties for sale in the area is low, currently standing at <50% of the 15-year average. Prices for properties in Leicester city centre are lower than the surrounding areas, which has made them a popular choice for buy-to-let investors, given the high proportion of graduates from two Russell Group universities who remain in the area due to the wide range of industries located nearby.
The project sponsor team is comprised of a local developer/contractor and a project manager with 40 years’ experience across multiple industries and areas, including the completion of a £13m residential scheme in Leicester city centre.
Regarding the partnership, Philip Mitchell of Mitchian Alliance commented:
“The team at Hilltop has understood our requirements from the get-go, addressed every stage of the development cycle and simplified the funding process. Their model is perfect for us as we embark upon a period of scaling our business.”
Paul Oberschneider, Founder and CEO of Hilltop Credit Partners, commented:
“A vibrant university city with great connectivity, strong employment credentials and comparatively affordable housing makes Leicester an attractive location for development. Within the city centre, the limited supply of residential property adds to a compelling proposition.”