Hilltop closed 2019 in the best style possible – by completing a new residential loan after months of dedicated activity.
Funds advised by Hilltop Credit Partners provided a total loan of £2.6m to LOK Development 05 Limited – a company controlled by the Morton Group, a leading family-owned residential developer in the North East of England.
In addition to advising on the loan, Hilltop also arranged the provision of private equity from third party investors – a key feature of Hilltop’s bespoke funding model for SME developers.
Funds will be used for the acquisition and conversion of a Grade II-listed former office building in the centre of Hexham – an affluent commuter town around 30 mins from Newcastle.
The central town for touring nearby Hadrian’s Wall, Hexham’s historical reputation as a sorry place (sacked by the Vikings in 875, trashed multiple times by the Scots to name but a few of its infamous experiences) has been erased over time, and in January 2020 the town was named as Britain’s happiest town .
The 20-month project will deliver and sell 16 units of varying sizes and formats, all available through the government Help to Buy scheme. Interest is expected to be high given Hexham town centre’s notable lack of recent new-build/conversion properties.
Commenting on the deal, Gary Morton, CEO of Morton Group, said:
“We are excited to be partnering with Hilltop on this development, and we believe there will be strong demand from both ‘downsizers’ and young families for the units we are building. The Morton Group is focused on delivering high-quality residential developments in the North East of England.”
Paul Oberschneider, CEO of Hilltop Credit Partners, commented:
“We are pleased that Morton Group has chosen to work with Hilltop on this exciting development. Morton Group has unparalleled knowledge and experience in the North East market, and it has been a pleasure to work with this talented management team.”