Hilltop Credit Partners completes £16.1m loan for 122-unit newbuild residential development in Leicester
Funds advised by Hilltop Credit Partners have provided a development finance facility of £16.1m to Mitchian Group for a development in central Leicester that supports Leicester City Council housing mandate and demand for new housing within the area.14 December 2023
Funds advised by Hilltop Credit Partners, a leading residential-focused real estate investment manager, have completed a £16.1m loan to Mitchian Group for the development of 122 private residential units and a small commercial unit in central Leicester.
Situated on Jarrom Street adjacent to the NHS Leicester Royal Infirmary and a short walk to both the De Montfort University and Leicester University campuses, the project will deliver 116 one-bed flats, 1 two-bed flat and 5 studios as well as a small ground-floor commercial unit. Residents will also have access to internal communal space and a 1,300 sq. ft. residents’ roof terrace.
With a shortage of supply for new homes to rent and buy in Leicester, the development will support Leicester City Council’s expectation to construct 39,400 new homes from 2020 to 2036.
The affordably priced, high-specification units are expected to appeal particularly to professional landlords, given strong anticipated rental demand from NHS hospital workers, students at two nearby university campuses, and other local professionals.
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 successful completion of a recent £13m residential-led scheme at Northgate Gate Street in Leicester city centre, also funded by Hilltop Credit Partners.
Tiger Craft, President, and COO of Hilltop Credit Partners, commented:
“It is a privilege to work with the Mitchian Group again following the success of our first partnership in Leicester. They have proven their ability to successfully identify and execute on attractive development opportunities in their local market, and as we continue to invest in the Leicester housing market, we believe this latest development will prove extremely attractive to landlords seeking to capitalize on a record imbalance between rental supply and demand.”
Regarding the partnership, Philip Mitchell of Mitchian Group commented:
“The Leicester market continues to suffer from an acute shortage of housing stock, and we believe our Jarrom Street development will provide much-needed, affordably priced accommodation to local students and professionals. It was a pleasure to work with Hilltop Credit Partners again for our second loan in Leicester following the successful and recent completion and exit of our development at Northgate Street. Hilltop are aware of the opportunities within this market and committed to investment into affordably priced housing.”