Aldermore provides £85m facility for London rental portfolio
Aldermore has provided an £85 million commercial real estate facility to support Brydell Partners’ acquisition of a 325-unit residential portfolio across London. The transaction marks a significant new relationship for the bank and reflects continued institutional appetite for rental housing in the capital.
The five-year interest-only facility enabled Brydell Partners to acquire five residential schemes in Waltham Forest, Ealing and Wandsworth. Aldermore committed the full loan amount upfront, providing certainty across the investment term.
Portfolio composition
The portfolio comprises one-, two- and three-bedroom apartments across stabilised income-producing assets and newly built developments. Two schemes are newly built and currently in the lease-up phase, while three are stabilised and performing. At approval, the portfolio stood at approximately 75% occupied, with leasing activity continuing and developments projected to reach full stabilisation in the coming months.
The transaction follows a period of significant activity in the rental sector, with UK build-to-rent investment reaching £3 billion in the first half of the year, demonstrating sustained institutional interest in professionally managed rental housing.
Lender and borrower profiles
Brydell Partners is a London-based real estate investment firm founded in 2014. The company has invested across UK real estate sectors, targeting assets where value can be driven through active asset management and operational improvements.
Steve Isaacs, commercial real estate finance at Aldermore, said the bank worked closely with Brydell in a competitive environment to deliver a funding solution within tight timeframes. “Establishing new relationships with high-calibre sponsors is a key priority for us, and this deal showcases the expertise, agility and certainty of execution that Aldermore brings to complex real estate deals,” he said.
Azfar Rizvi, commercial director of commercial real estate at Aldermore, noted that while the market backdrop remains challenging, the deal reflects continued investor appetite for well-located rental assets in London. “This is a high-quality portfolio of homes in areas where rental demand remains strong,” he said.
The transaction comes as housing affordability pressures continue to mount, with solo first-time buyers facing nine years of saving for deposits in many areas, potentially supporting demand for rental accommodation.
Market context
Christian Walters, head of investment at Brydell Partners, said Aldermore demonstrated a strong understanding of both the assets and the firm’s investment strategy. “Aldermore demonstrated a strong understanding of both the assets and our investment strategy, working collaboratively to deliver a flexible and dependable funding solution,” he said.
The deal demonstrates lender appetite for residential rental portfolios in established London commuter locations, with the five-year facility structure allowing time for lease-up and asset optimisation across the portfolio.
