Certain funds advised by Avenue Capital Group, a global investment firm, have completed the acquisition of a majority shareholding in Zorin Finance, the UK property development and investment finance lending platform, from Alternative Credit Investments and Sir John Beckwith and family.
Zorin’s Founder and Chief Executive Officer Luke Townsend will retain a shareholding and transition the business under its new ownership. The terms of transaction were not disclosed.
In addition to purchasing a majority shareholding in Zorin, Avenue has acquired the existing Zorin Finance Portfolio from Alternative Credit Investments and has exclusivity to fund all of Zorin’s future loan originations.
Zorin Finance was founded in 2011 in response to the credit crisis and retrenchment of high street banks from the development lending sector. Since 2014, it has provided over £800 million in finance to residential property developers. With Avenue’s investment and expanded support, Zorin expects to originate £400 million of loans over the next 12 months, by entering new markets and funding major developments across the country.
Luke Townsend, Founder and Chief Executive Officer of Zorin Finance, said: “We have established Zorin as a key player in the alternative residential development finance market over the last 10 years and now look forward to significantly scaling the business with Avenue Capital Group and introducing new product lines.
“Indeed, with the ability to now provide larger loans of up to £100 million at more competitive rates, we intend to have an even greater impact on helping UK housebuilders meet the nation’s new housing needs. I would like to thank the Beckwith Family and ACI for their partnership and support over the years and wish them well for the future.”
Piers Beckwith, former shareholder and director of Zorin Finance, added: “We are proud to have supported Zorin Finance for the last decade and to have helped the business grow in such an exciting nascent space. We wish the team and the business every success as they begin this new chapter.”
