SME
Property Finance
Investment
> Targeting a gross IRR of 15%+
> 18-24 month project timescales
> Hybrid capital structure
> Secured lending
Access the highly fragmented residential development debt market
The current UK residential development market suffers from not one but two big problems:
1.The funding gap. Estimated around £200m to 2028*
2.The structural housing shortage.
300,000+ new homes needed p.a**
* Liberum Equity 18/06/2018
** House of Commons briefing paper 03/09/2018
Hilltop’s hybrid capital structure bridges this gap for developers who can’t access capital efficiently, providing an attractive property finance investment opportunity.
Investment strategy
Equity-like returns. Downside protection.
We lend a blended capital stack up to 75% LTGDV / 90% LTC. It essentially provides developers both the senior and mezzanine finance, plus part of the equity required for their project, in one convenient package.
Both debt and equity characteristics are combined through a first charge security over the asset. A fixed coupon is offered, as well as an equity kicker, using prudent leverage to further enhance returns.
An exit-driven model aligns Hilltop’s interests with the developer, providing equity-like returns as well as downside protection.
“The UK suffers from a structural shortage of housing that the average buyer can actually afford. The UK Government estimates a need for 300,000 new homes annually. This is a 60% increase over the total delivered during the past five years.”
Paul Oberschneider
Founder & CEO
Register your interest in property finance investment opportunities for lenders…
…and we’ll get right back to you to discuss in detail
