Aldermore has provided an £11.7m commercial real estate facility to Southernwood Residential II Limited Partnership, supporting the refinancing and ongoing enhancement of a portfolio of professionally managed residential assets across Derby, Doncaster and Nottingham.
The facility consolidates several existing loans into a single structure, giving Southernwood greater flexibility to execute its long-term investment strategy across three multi-unit residential buildings comprising more than 125 apartments.
The portfolio includes Kings Crescent Apartments in Derby, Luxaa Apartments in Doncaster and The Phoenix in Gedling, Nottingham. These properties are predominantly modern apartment schemes that are either recently built or have undergone significant refurbishment, and they benefit from strong occupancy levels and stable rental performance.
As part of the transaction, Aldermore has also agreed a tranche-based acquisition facility, enabling Southernwood to continue acquiring the remaining leasehold interests within the Kings Crescent development in Derby and the Luxaa Apartments scheme in Doncaster. The strategy aims to create fully consolidated freehold ownership across both assets, enhancing long-term value and operational efficiency.
Southernwood Residential is part of the wider Southernwood and Greenpoint group, an experienced residential investment and asset management business with a track record of acquiring, improving and managing residential property portfolios across the UK. Aldermore has supported the group since 2021, and this latest deal strengthens that long-standing relationship further.
"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," said Stewart Currie, senior relationship manager, commercial real estate at Aldermore.
"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."
"This deal reflects our continued appetite to support experienced residential investors with ambitious growth plans and a proven track record," added Azfar Rizvi, commercial director, commercial real estate at Aldermore.
"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."
"This refinancing marks an important milestone for Southernwood and provides a strong platform for the next stage of our growth," said Irvine Robertson, chief executive of Southernwood Residential.
"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."
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