Aldermore has provided a £29m, 10-year, interest-only commercial residential investment refinance facility.
The deal represents the largest commercial mortgage transaction Aldermore has done to date.
The facility has been provided to Kexgill Cranbrook Limited and Kexgill Cottingham 2 Limited, both subsidiaries of Kexgill Limited. The European Kexgill Group owns the University Quarter, a branded area adjacent to The University of Hull campus.
It involved the refinancing of 174 residential units, consisting of houses in multiple occupation (HMOs) and a large student accommodation building. In total the residential units make up 857 bedrooms which form a substantial part of the University Quarter. It is located adjoining The University of Hull.
John Carter, commercial director for commercial real estate at Aldermore, 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.”
Richard Stott, managing director of the Kexgill Group, added: “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 their York office and Clarion at their Leeds office, in addition the expertise of Steve Williams of Bespoke Business Finance.”
