The purpose of the facility is to assist with the purchase of the existing site and the conversion into residential units. The developer has also submitted a planning application for a 224-bed scheme, a further 21 units, which is pending approval.
Zorin will fund the building of 203 residential units in North Harrow, North West London and takes its lending to date over £275m. The business, founded by entrepreneur Luke Townsend and backed by a fund managed by MW Eaglewood (part of the Marshall Wace group of investment managers under common control) and Sir John Beckwith’s Pacific Investments, has put risk management at the heart of all decision making. It has now funded a total of 86 loans with zero capital losses.
The challenge of housing supply and affordability is one of the biggest issues facing Britain today along with the lack of appetite to lend by mainstream banks and the recent struggles of peer to peer lenders in the residential development market. Therefore, Zorin aims to support the delivery of new homes in the UK which otherwise would not be built by offering an alternative lending solution which in time will contribute to the revival of the SME housebuilders.
Andrew Scotting, head of loan origination at Zorin Finance, said: “It’s been a pleasure working with Sheen Lane Developments on this project, we have already successfully funded 6 schemes for them over a 2-year period and the fact that they are using us again is a testament of our offering.
Luke Townsend, Founder & CEO of Zorin Finance, said: “It is clear from the success we have had to date that SME developers welcome our flexible, fast and tailored approach to lending, typically on terms out of the reach of traditional lenders. It is evident that alternative lenders such as Zorin are one of the few lenders in the market place with the ability to provide a loan of this size and the service of this quality given the high rates of leverage that we are able to offer.
“The combination of our real estate, asset management and technology expertise enables us to deliver a superior service which we believe will help continue to grow our market share for many years to come.”
Martin Tynan of Sheen Lane Developments, said: “Zorin Finance offered us an attractive borrowing proposition as always. Their process is simple, flexible, transparent and their ability to move so swiftly makes them a real pleasure to work with. As a business, this is really important to us and gives us an edge in a competitive market place. We really could not ask for a better service.”
Zorin typically offers development finance and bridging loans for between £1m and £50m and, unlike traditional lenders, is able to offer loans up to 90% of loan-to-cost and 70% of loan to GDV. Funds are typically drawn within 4 to 6 weeks with no exit fees.