Hilltop Credit Partners completes £17m loan for residential development in Hastings

By Bridging Loan Directory 4th April 2024

Funds advised by Hilltop Credit Partners, a leading residential-focused real estate investment manager, have completed a £16.8m loan to Purple Pepper Homes for the development of 103 private residential units in central Hastings.

The project will deliver 103 units across three blocks ranging from four to seven stories and comprised of 62 one-bed flats, 40 two-bed flats, and one 3-bed flat.

The development is located in Hastings town centre, adjacent to the amenities of Station Plaza, with dedicated underground parking for all residents and well-lit pedestrian access to Hastings Station.

Hastings suffers from an acute under-supply of housing, with new delivery falling c. 70% below estimated need, according to the most recent Housing Delivery Test.

Historically, newbuild housing activity has been limited by the town’s topographical constraints, and local authorities are making a concerted effort to encourage new housing supply. Average home prices in Hastings have risen by 27% since March 2020, according to Land Registry Data.

With average unit sales values and monthly rents below the regional average for the South East of England, the scheme is expected to be affordable for a large demographic of both downsizers and younger professionals looking to buy or rent.

The Purple Pepper Sponsor team has a strong track over the past decade of delivering affordably priced flats across London and South East England.

Regarding the partnership, Pierre Lombaard, Managing Director of Purple Pepper Partnership, commented:

“It was a pleasure working with the Hilltop team on this transaction.

Hilltop’s focus on the UK residential development market meant that they were able to underwrite and fund the project in an efficient manner, and we look forward to continuing our relationship throughout the lifecycle of this development and on future Purple Pepper development projects.

The Hastings market is in dire need of new, affordably priced housing in both the sales and the rental market, and we look forward to delivering these units beginning in early 2025.”

Jacob Andersen, Head of Transactions at Hilltop Credit Partners, commented:

“We are excited to be funding the Purple Pepper team to delivery this well-conceived development in Hastings, which we believe will be postively received by the local market.

The Purple Pepper Team has proven their ability to delivery affordably priced, high-quality housing across the South East of England.

We look forward to completing this development together as well as working on future projects together.”