Aldermore has completed a £37.6 million commercial mortgage facility to support the refinancing and further development of a student housing portfolio owned by Ace Student Living Ltd.

The deal underpins a diverse collection of five purpose-built student accommodation (PBSA) properties located in Southampton, Exeter, Plymouth, Winchester and Falmouth.

The capital will enable Ace to enhance the portfolio and pursue new investment opportunities in response to strong demand for high-quality student accommodation across key university towns and cities.

Founded in 2020, Ace is led by chief executive Javaid Aziz, a former IBM UK CEO, and chief operating officer Paul Aziz, a former HSBC and technology sector executive.

The company’s business model is focused on the acquisition, development and operation of premium PBSA assets throughout the South West of England.

Caroline Baker, business development manager for commercial real estate at Aldermore, said the bank had structured a bespoke funding solution designed to meet the needs of an experienced sponsor with a clearly defined strategy.

“We’re delighted to have provided this significant commercial mortgage to a highly experienced PBSA developer and operator. We structured a bespoke facility which raises capital for other projects and gives the directors the flexibility to enhance the portfolio as opportunities arise,” she said.

“With Javaid and Paul’s experience spanning over two decades in residential and PBSA development, and our expertise in the PBSA sector, we were able to work together to provide a bespoke debt solution which we were able to deliver within the tight timescales required with the support of our professional team.”

In a joint statement, Javaid and Paul Aziz said: “We were impressed with the management team at Aldermore; their knowledge, professionalism and attention to detail. We look forward to partnering with them for continued growth and success.”