Funds advised by Hilltop Credit Partners – a residential-focused real estate investment manager – have completed a £16.1m loan to Mitchian Group for the development of Build to Rent homes and a small commercial unit in central Leicester.
Situated on Jarrom Street, the scheme will deliver 122 new homes – a mix of 116 one bedroom apartments and one two bedroom apartment alongside five studios. Residents will also have access to internal communal space and a 1,300 sq ft roof terrace.
With a supply shortage of new homes to rent in Leicester, the Build to Rent development will support Leicester City Council’s expectation to construct 39,400 new homes from 2020 to 2036.
“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 capitalise on a record imbalance between rental supply and demand.”Tiger Craft, President and COO, Hilltop Credit Partners
The new scheme is located adjacent to the NHS Leicester Royal Infirmary, and it is a short walk to both the De Montfort University and Leicester University campuses. The affordably priced, high-specification homes are expected to appeal NHS hospital workers, students at the two 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.
“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.”Philip Mitchell, Mitchian Group