paul oberschneider

OakNorth Bank increases loan-on-loan facility to Hilltop Credit Partners

OakNorth Bank has completed an additional £20m loan-on-loan facility to specialist development lender Hilltop Credit Partners.

The specialist bank has increased its original £30m facility to £50m, which will support Hilltop’s fast growing real estate development funding pipeline. 

“We are delighted to have increased our facility with OakNorth Bank, which shows their confidence and commitment to our business,” said Paul Oberschneider, CEO at Hilltop Credit Partners (pictured above).

“Like us, they have a demonstrable understanding of the needs of sophisticated investors, and with property comprising a significant portion of their own lending portfolio, they have a deep understanding of the underlying asset class. 

“This sets OakNorth Bank apart from many of the other banks in the market.” 

Mohith Sondhi, senior director of debt finance at OakNorth Bank, added: “Our deep knowledge of the property sector and the ability to provide an attractive financing package tailored to Hilltop’s requirements, helped us to distinguish ourselves throughout the competitive process. 

“We look forward to building further on our partnership with Hilltop Credit Partners.”

Since its launch two years ago, Hilltop has been helping housing developers who know their local markets but need access to tailored financing solutions to fund their projects. 

Hilltop’s management team includes former developers and finance experts, and its fund is backed by global real estate investment firm Round Hill Capital.

“Combined with Round Hill Capital’s commitment and expertise in this space, Hilltop understands what it’s like to be in the developer’s shoes and how important it is to react to the inevitable market changes that can occur during a project, especially during these unprecedented times,” stated Mohith. 

Tiger Craft, partner and CIO at Hilltop Credit Partners, commented that demand from residential developers continued to be strong, and was encouraged by the strength it had seen in the UK residential market over the past several months. 

“We have a growing pipeline with great sponsors, while the structural imbalance between the demand for new housing and the availability of capital to fund it continues to grow. 

“For SME developers, securing funding has been needlessly frustrating, time consuming and expensive for far too long. 

“At Hilltop, our entire process is focused on helping developers move quickly to acquire sites, build homes and sell them in a fast, cost-efficient manner.”

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