John Carter

Aldermore completes its largest-ever commercial mortgage deal



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Aldermore bank has provided a £29m, 10-year, interest-only refinance facility for student accommodation in the north of England, it’s largest commercial mortgage transaction to date.

The funding was for Kexgill Cranbrook Limited and Kexgill Cottingham 2 Limited, both subsidiaries of Kexgill Limited.

The European Kexgill Group own the University Quarter, a branded area adjacent to The University of Hull campus.


Picture of the University Quarter student accommodation project
 
The deal involved the refinancing of 174 residential units, consisting of HMOs and a large student accommodation building. 

In total, the residential units make up 857 bedrooms.


Interior shot of a studio apartment at University Quarter
 
John Carter, commercial director for commercial real estate at Aldermore (pictured above), said: “We’re delighted to have worked with such an experienced operator like Kexgill and provide them with the bespoke finance facilities they need. 

“Student accommodation projects can be complex, and developments in the sector are often not well understood by some lenders. 

“This deal underpins Aldermore’s expertise in this market, our commitment to provide regional support, and our mission to back clients like Kexgill to fulfil their ambitions.”

Michael Graham, senior lending manager at Aldermore, added: “This deal is a great example of the work we’re doing in the north of England, working closely with brokers to back operators and help them get the funding they need.”

Over the past four years, and during Covid-19, Kexgill’s occupancy rates have been around 95%. 

Richard Stott, managing director at the Kexgill Group, commented: “We needed a trusted partner to understand our commitment to making cohesive long-term communities — not just bricks and mortar. 

“The University Quarter is a thriving area which includes services and facilities which add to the security, but not normally associated with an investment vehicle. 

“We have found that partner in Aldermore.
 
“Notwithstanding the complexity of the deal due to quantum of buildings, it was a very smooth transaction involving corporate solicitors, Andrew Jackson Solicitors LLP at its York office, and Clarion at its Leeds office, in addition the expertise of Steve Williams of Bespoke Business Finance.”
 
Aldermore’s commercial residential investment mortgage was launched in February 2020 for clients looking to purchase or remortgage larger residential portfolios, including multi-unit blocks.

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