Aldermore provides £16m student accomodation refinance loan
Aldermore bank has provided a £16m, ten-year, interest only commercial residential investment refinance loan to existing client Kexgill Nottingham Limited, a subsidiary of Kexgill Limited.
The funding will be used to refinance nine student accommodation properties in Nottingham and one in Liverpool. In total, the residential units make up 369 bedrooms.
Aldermore’s last deal with Kexgill Limited was a £29m commercial residential investment facility used to refinance 174 residential units, consisting of 857 bedrooms, which formed a substantial part of the University Quarter in Hull.
This latest deal brings Aldermore’s total lending with Kexgill to £46m (£29.3m and £16.7m) and is one of the largest facilities Aldermore has completed to date.
The European Kexgill Group owns and self-manages student accommodation throughout England and parts of mainland Europe making them one of the largest still privately owned student accommodation providers in the UK.
Graham Ritchie, head of commercial mortgages north at Aldermore, said:
“It’s great to be backing Kexgill again and provide them with the tailored funding facilities they need.
Kexgill are highly experienced property investors and developers within the student accommodation space and are one of the leading providers in the North of England.
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 lenders like Kexgill.”
Michael Graham, senior lending manager at Aldermore, said:
“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.
Across all properties Kexgill manage, they have maintenance teams who are available 24/7 and are ready to conduct repairs within the same working day.”
Richard Stott, managing director of the Kexgill Group, said:
“Another smooth transaction from Aldermore helping us expand in selected areas in the UK.
I’m particularly pleased with the courtyard development purchased in Liverpool which ideally suits our returning student model.”
Steve Williams of Bespoke Business Finance, who recommended Aldermore for the financing, said:
“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 Mick driving the deal to completion.
Having someone working proactively instead of reactively is an absolute breath of fresh air in my opinion.”
Ben Lamb of Clarion said:
“We are delighted to have again acted for Aldermore in their continued support of Kexgill’s expansion.
Both of the parties, and their advisors adopted a collegiate approach throughout which greatly assisted in bringing the transaction to a rapid and successful conclusion.”