The money has been transferred from Hilltop Credit Partners to the Propiteer Group which is also behind the new Hilton Garden Inn, which will sit alongside the apartments.
Work began on both projects last July with the hotel set for completion in the spring, followed by the apartments in the summer.
Propiteer has previously agreed a £15 million loan with Peterborough City Council for the hotel which is due to net the authority around £500,000 in interest.
The new one and two bed apartments will be accompanied by underground parking and cycle spaces and will form part of the wider £120 million development at the South Bank (next to the Peterborough United stadium) which includes: a new government hub with 1,000 workers, the council’s Sand Martin House offices, a gin and whiskey distillery, a total of 450 apartments and retail and leisure facilities.
Propiteer already owns a number of other hotels, including other Hiltons, and is involved in town centre redevelopments. Its projects at Fletton Quays will be managed by an in-house team of development managers and financial directors whose previous experience includes working with Lord Alan Sugar’s Amshold Group, Santander and Goldman Sachs.
Documents submitted to the council have revealed Propiteer expects to make a £3 million profit from development costs of £17.2 million. This is despite paying the council £82,400 as there will be no affordable housing on-site.
The terms of the loan with Hilltop have not been revealed
Dave Marshall, CEO of Propiteer Group, said: “Propiteer has already been involved with bringing the Hilton hotels brand to Peterborough. We’ve seen the potential for the city and are excited to be part of the Fletton Quays project. Hilltop came with strong credentials and we’re looking forward to partnering with them.”
Jacob Andersen, head of transactions at Hilltop Credit Partners, said: “This project sits well with Hilltop’s appraisal of market conditions at the moment – regional towns are presenting amongst the most compelling cases for investment.
“It’s our first commitment in East Anglia and, given the pedigree and local experience of Propiteer, I have no doubt of its success.”