Aldermore has provided a £27.8 million commercial real estate facility to Highcross Street Holdings Limited, refinancing a newly completed build-to-rent scheme in Leicester city centre.
The funding supports a joint venture between Monk Estates and Housing Growth Partnership (HGP), with the 171-unit development operated under the Hylyfe brand. The scheme comprises studio, one-, two- and three-bedroom apartments arranged around a landscaped communal courtyard, with a ground-floor Sainsbury’s.
Development details
Located on Highcross Street opposite the Highcross Shopping Centre, the development includes amenities such as a gym, cinema rooms, a roof garden, business and co-working spaces, and communal social areas. Monk Estates, founded in 1991, has a track record across build-to-rent and purpose-built student accommodation sectors.
Azfar Rizvi, commercial director of commercial real estate at Aldermore, said: “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.”
The transaction follows broader shifts in the UK rental market, as investors navigate changing demand patterns in regional cities. The deal also comes as new rental legislation takes effect, reshaping the regulatory landscape for professional landlords and BTR operators.
Sector financing
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,” Davidson said.
Mike Murphy, investment director at HGP, said: “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.”
Samuel Monk, director at Monk Estates, described the Highcross development as a milestone for the company’s build-to-rent platform in regional cities. “Our relationship with Aldermore has been an important part of our growth journey to date,” Monk said.
The refinancing follows the scheme’s completion and initial stabilisation period, with Aldermore structuring the facility to support the operational phase while aligning with the client’s portfolio growth plans.