SME
Property Finance
Investment
> Targeting a gross IRR of 17%+
> Asset Backed secured lending
> downside protection with equity upside
> 18-24 month project timescales
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.
Hilltop’s loans combine debt and equity characteristics through first-charge security over the asset, with a fixed coupon as well as an equity kicker, utilising 50% leverage to 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
