Kexgill secures £16m loan from Aldermore to refinance 10 student accommodation properties



674_2021-10-11-04-51-54pm.gif
Aldermore Bank has completed a £16m commercial refinance loan to Kexgill Nottingham Limited, a subsidiary of Kexgill Limited.

The 10-year, interest-only facility will be used by the repeat customer to refinance nine student accommodation properties in Nottingham and one in Liverpool, totalling 369 bedrooms.

The latest deal — one of the largest Aldermore has completed to date — brings the total lending with Kexgill to approximately £45m, after it previously funded a £29m commercial facility to refinance 174 residential units consisting of 857 bedrooms, which formed a substantial part of the University Quarter in Hull.

Graham Ritchie, head of commercial mortgages for the North at Aldermore, said: “It’s great to be backing Kexgill again and providing them with the tailored funding facilities they need. 

“Student accommodation is a sector which, unfortunately, many traditional lenders have turned their backs on, as developments can be complex. 

“This deal demonstrates Aldermore’s expertise in this market and our commitment to providing support for regional leaders like Kexgill.”

Michael Graham, senior lending manager at Aldermore, added: “Both Nottingham and Liverpool have a thriving student scene with world renowned universities. 

“Kexgill’s properties are in prime locations and will help strengthen the quality of student accommodation in the two cities.”

Richard Stott, managing director at the Kexgill Group, commented that the transaction would help the company expand in selected areas of the UK. 

“I’m particularly pleased with the courtyard development purchased in Liverpool which ideally suits our returning student model.”

Steve Williams, associate partner at Bespoke Business Finance, who recommended Aldermore for the financing, stated: “I’m delighted to have been a part of another very smooth transaction between Kexgill, Aldermore and ourselves. 

“For me, the key to this, and what sets Aldermore apart from their competition, is having someone as experienced and as knowledgeable as Michael driving the deal to completion. 

“In my opinion, having someone working proactively instead of reactively is an absolute breath of fresh air.”

Leave a comment