Leicester city centre BTR scheme secures £27.8m refinancing from Aldermore

"This scheme is a strong example of how well-located, well-designed developments can deliver long-term value for both residents and investors"
- Azfar Rizvi - Aldermore

Aldermore has provided a £27.8m commercial real estate facility to Highcross Street Holdings Limited, refinancing a newly developed build-to-rent scheme in Leicester city centre.

The funding backs a joint venture between Monk Estates and Housing Growth Partnership (HGP), with the scheme operated under the Hylyfe brand. Located on Highcross Street, directly opposite the Highcross Shopping Centre, the development comprises 171 studio, one-, two- and three-bedroom apartments arranged around a landscaped communal courtyard, alongside a ground-floor Sainsbury's. Residents have access to a gym, cinema rooms, a roof garden, business and co-working spaces, and a range of communal social areas.

Founded in 1991, Monk Estates is an experienced UK developer and operator with a track record across build-to-rent and purpose-built student accommodation. Aldermore has supported the business across several transactions in the living sector.

"The build-to-rent sector continues to play an increasingly important role in addressing housing demand in regional city centres, where quality, professionally managed rental accommodation is often in short supply," said Azfar Rizvi, commercial director, commercial real estate at Aldermore. 

"This scheme is a strong example of how well-located, well-designed developments can deliver long-term value for both residents and investors."

"Aldermore has significant experience supporting living-sector assets across the lifecycle, and we remain focused on backing projects and partners that contribute positively to the private rented sector. This transaction highlights our ability to provide specialist funding solutions that support both immediate requirements and long-term portfolio growth."

Derek Davidson, senior lending manager at Aldermore, said the deal built on an established relationship with the borrower. "We're pleased to support Highcross Street Holdings and Monk Estates with this facility, building on an established relationship and backing an experienced sponsor operating in a sector we know well. Our tailored approach allowed us to structure a facility that meets the needs of the scheme as it moves into its operational phase, while aligning with the client's wider growth ambitions. This is exactly the type of relationship-led lending we pride ourselves on."

Mike Murphy, investment director at HGP, welcomed the conclusion of the refinancing. "We are pleased that the refinancing of this BTR development has concluded after a short stabilisation period. Consisting of 171 homes which will assist in alleviating housing shortages in Leicester, we continue to work in partnership with Monk Estates to manage the development, while collaborations with lenders such as Aldermore, who understand the sector and HGP's equity investment model, are key to unlocking and delivering housing at scale across the country."

Samuel Monk, director at Monk Estates, pointed to the significance of the deal for the company's broader growth plans. "The Highcross development is a key milestone for us as we continue to grow our build-to-rent platform in well-connected regional cities like Leicester, where demand for high-quality professionally managed rental accommodation remains strong."

"Our relationship with Aldermore has been an important part of our growth journey to date. Their understanding of our business, the build-to-rent sector and the realities of transitioning developments into long-term investments has been invaluable. We value their flexible, pragmatic approach and look forward to continuing to work together as we grow our portfolio."