As part of this, the development lender aims to finance the construction of over 1,000 new residential units across the UK, with a focus on affordable regional markets with strong supply-demand fundamentals.
The investment provides Hilltop with an immediate opportunity to grow its existing UK residential development finance platform.
Metropolitan committed circa £60m in 2021 to purchase a portfolio of existing development loans across five regions and to continue funding the active pipeline.
Paul Oberschneider, founder and CEO at Hilltop Credit Partners (pictured above), said: “I’m delighted to announce this partnership, which further establishes Hilltop as a leading player in the UK development lending market.
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“Working with Metropolitan Real Estate will bring together our collective experience in real estate and credit to support proven housebuilders in the UK and to promote greater housing supply.
“This partnership is a validation and recognition of our work so far, and we look forward to growing our lending portfolio across Britain this year.”
Cherine Aboulzelof, managing director and head of Europe at Metropolitan Real Estate, added: “We are investing with an experienced team in an already seeded and growing portfolio of affordable residential loans that provides visibility and proof of concept in attractive locations with quality local sponsors.
“This opportunity provides our investors with access to the UK residential sector with an attractive risk-return profile for our fund.”
Hilltop is backed by global real estate investment firm, Round Hill Capital, and the firms’ combined expertise, industry knowledge and access to capital has facilitated the construction of 250 residential units across the UK to date.