Funds advised by Hilltop Credit Partners have completed an £18.3m loan to Yeung Property Group for a development of 86 residential houses and flats in New Waltham, on the outskirts of Grimsby, Lincolnshire.
The project will deliver 68 houses with private outdoor space and parking facilities, in addition to 18 flats priced below regional Help To Buy thresholds. The site consists of 2.5 hectares of agricultural land 2 miles from the centre of Grimsby and c. 10 miles from Immingham. The port forms part of the UK’s largest docks by tonnage and is earmarked for significant development to become a key producer of sustainable electricity generation in the UK’s “Energy Estuary.”
Data suggests the local housing market has been active in recent years. Overall prices have remained relatively affordable, with the average price of £161,277 sitting significantly below the national average of £256,000. Demand for newbuild, quality stock, however, is high. The development has a waiting list of buyers created from the completion of a nearby pre-sold 160-unit scheme by the same developer.
Grimsby stands to receive £40m of government funding for leisure and retail regeneration projects. Furthermore, the Northern Powerhouse project is providing gap funding to strengthen the role of Cleethorpes town centre as the key driver of North East Lincolnshire’s tourist economy.
The project sponsor is a local developer with more than 20 years’ experience. They have delivered a number of successful schemes across Northern England. The in-house construction team brings a wealth of local experience including the 160-unit Clee Meadows regeneration project.
Ming Yeung of YPG commented:
“We have been working towards this project with Hilltop for some time. They have demonstrated a thorough, methodical and patient understanding of the complexities encountered during the planning period. Given that, it’s most pleasing to be able to progress with them.”
Paul Oberschneider, Founder and C.E.O of Hilltop Credit Partners, commented:
“This is a large development in a region with decent affordability. The development team has impressive experience in and around the location, including high volume sales. New Waltham should perform well and follow the success of YPG’s nearby Clee Meadows scheme.”
To date Hilltop’s ‘Smart Capital’ has provided approximately £90.0m in lending commitments to SME developers across England. Specifically, funds are facilitating the construction of 382 residential units. To find out more about our unique lending model click here.