Aldermore has provided an £11.7m commercial real estate facility to refinance Southernwood Residential properties in Derby, Doncaster and Nottingham.
The facility brings several existing loans into a single structure covering three residential buildings containing more than 125 apartments.
The portfolio comprises Kings Crescent Apartments in Derby, Luxaa Apartments in Doncaster and The Phoenix in Gedling, Nottingham. The properties are predominantly modern apartment schemes that have either been built recently or undergone significant refurbishment.
Aldermore said the buildings had strong occupancy levels and stable rental performance.
The lender has also agreed a tranche-based acquisition facility that will allow Southernwood to buy the remaining leasehold interests at Kings Crescent and Luxaa Apartments.
Southernwood intends to establish consolidated freehold ownership of the two developments, with the aim of improving operational efficiency and long-term value.
Southernwood Residential forms part of the Southernwood and Greenpoint group, which acquires, improves and manages residential property portfolios across the UK. Aldermore has supported the group since 2021.
Stewart Currie, senior relationship manager for commercial real estate at Aldermore, comments: “Southernwood has a clear and well-executed strategy focused on acquiring and actively managing high-quality residential assets in regional locations with strong rental demand.
“Having supported the business for several years, we have seen first-hand its ability to identify opportunities, enhance assets and deliver consistently strong operational performance.
“This deal simplifies the funding structure, supports the next phase of the investment strategy and demonstrates our ability to provide tailored solutions that evolve alongside our customers’ needs.”
Azfar Rizvi, commercial director for commercial real estate at Aldermore, says: “This deal reflects our continued appetite to support experienced residential investors with ambitious growth plans and a proven track record.
“The portfolio comprises high-quality rental homes in well-connected locations where tenant demand remains resilient.
“Southernwood has demonstrated a clear ability to create value through active asset management, and we’re pleased to have structured a facility that supports both the refinancing of existing assets and future acquisitions.
“At Aldermore, we take a pragmatic and relationship-led approach to lending, helping customers unlock opportunities and achieve their long-term objectives. This deal demonstrates the flexibility, certainty and real estate expertise we bring to complex investment portfolios.”
Irvine Robertson, chief executive at Southernwood Residential, adds: “This refinancing marks an important milestone for Southernwood and provides a strong platform for the next stage of our growth.
“A key part of our strategy is acquiring the remaining leasehold interests within our portfolio to create fully consolidated freehold ownership, enhancing both operational efficiency and long-term value.
“Aldermore understood our vision from the outset and worked collaboratively to deliver a flexible funding solution that supports our objectives.
“We’re delighted to be building on our existing relationship with Aldermore and look forward to continuing our partnership as we grow the portfolio further.”
