London:

Zorin Finance funds its largest loan to date

Zorin Finance has completed its largest deal since its launch in 2011, a £42m loan to Eagle Street Partner, a pan-European real estate investment and asset manager advised by BBS Capital.

The client will use the 48-month term facility for the acquisition of four regional offices in Maidenhead, Newcastle, Uxbridge and Glasgow, which will form the basis of Eagle Street’s first UK commercial offices portfolio.

The facility takes Zorin Finance’s lending to date to over £850m, having funded a total of 187 loans with zero capital losses.

It also marks Zorin’s entry into the investment loan market, where the lender will target a multitude of sectors, including development exit, stabilised residential and commercial, PRS, regional offices, hotels, student accommodation and multi-tenanted estates/portfolios.

The lender will offer loans between £2m and £150m on terms up to five year, with maximum LTVs ranging from 60% to 75% depending on asset class.

Flexible debt structuring will allow for servicing via a combination of interest current and PIK.

Robert Foley, head of investment loans at Zorin Finance, said: “We agree with Eagle Street’s investment thesis that the Covid-19 pandemic has presented an opportunity to exploit price dislocation in the regional office market as both institutional and private investors are forced to rebalance their portfolios.

“It’s been a pleasure working on this deal with Eagle Street Partners and its advisers, BBS Capital, and we look forward to continue supporting them into the future.”

David McLoughlin, chief financial officer at Eagle Street Partners, commented: “This debt transaction is a key milestone as we continue to grow our portfolio of UK regional offices.

“Robert and the team at Zorin Finance share our view of this market, and the value creation which can be unlocked through acquiring higher yielding assets and undertaking active asset management with a flexible debt provider.”

Adam Buchler, managing director at BBS Capital, added: “We’re delighted to have helped our client Eagle Street Partners to finance this portfolio which will form the start of a wider strategy.

“Zorin was able to provide the flexibility and speed that we required, and we look forward to growing the relationship with Robert and the team.”

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Published:  08-Nov-2021 (Andreea Dulgheru)

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