Zorin development

Zorin prevents development delays with £10.4m refinance




Zorin Finance has provided a £10.4m loan to refinance an office-to-residential conversion in Fulham.

IPE Developments required alternative capital quickly after its mezzanine lender asked for the loan to be repaid due to the fund winding down and the scheme had yet to reach practical completion.

Instead of taking a second charge position behind the developer, Zorin agreed to refinance the entire scheme with a quasi-bridging/development loan of £10.4m.

This prevented the development from being delayed as it avoided the complexities of agreeing an inter-creditor deed part way through the build and significant legal fees.

“By taking a stretched senior position, we were able to provide enough funds to complete the scheme, yet also bring down the overall cost of debt for our client,” explained Luke Townsend, CEO of Zorin Finance.


An interior view of the development

Completion of the works took place over two stage payments leaving the lender at 75% LTV with four of the 20 apartments already exchanged.

Seven apartments have now been sold, while a further seven are under offer.

As a result, Zorin has agreed to release further equity to the client for them to secure new development sites.

“Since day one of working with Zorin Finance, we found their team to be exceptional in understanding the complexities of any development brought to them,” said Adnan Imam, managing director of IPE Developments.

“Zorin has always been proactive and professional, especially when working to tight timescales.

“This is complemented by the fact IPE Developments has completed a number of deals with Zorin Finance.”

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