LOK Development and Hilltop Credit Partners have struck a deal providing a loan of £2.6m and the provision of private equity from third party investors for the acquisiton and conversion of a Grade II-listed former office building in the centre of Hexham – an affluent commuter town around 30 mins from Newcastle.
The 20-month project will deliver and sell 16 units of varying sizes and formats, all available through the government Help to Buy scheme. Interest is expected to be high given Hexham town centre’s notable lack of recent new-build/conversion properties.
Commenting on the deal, Gary Morton, CEO of Morton Group, said:
“We are excited to be partnering with Hilltop on this development using our LOK Development SPV model, and we believe there will be strong demand from both ‘downsizers’ and young families for the units we are building. The Morton Group is focused on delivering high-quality residential developments in the North East of England.”
Paul Oberschneider, CEO of Hilltop Credit Partners, commented:
“We are pleased that Morton Group has chosen to work with Hilltop on this exciting development. Morton Group has unparalleled knowledge and experience in the North East market, and it has been a pleasure to work with this talented management team.”