New partnership with Cynergy Bank enables specialist residential development lender to expand maximum loan size and target ambitious growth
Zenzic Development Finance (ZDF), the newly rebranded residential development finance arm of Zenzic Capital, has secured a three-year funding line of up to €52.5m from UK challenger bank Cynergy Bank.
The strategic partnership will enable ZDF to treble its maximum loan size from €5.8m to €17.5m and supports the firm's ambition to triple lending volumes throughout 2025. Market analysts note this expansion comes just as rising construction costs and stricter banking regulations have created a perfect storm for SME developers, making this new liquidity source particularly timely for projects that would otherwise stall.
Led by Simon Brown, Head of Lending, ZDF offers residential-led schemes with up to 75% loan-to-GDV and 90% loan-to-cost Stretch Senior Development Finance and up to 85% loan-to-GDV and 90% loan-to-cost Mezzanine Finance. The company's experienced team supports developers throughout the UK with higher leverage than typically available in the current constrained market.
"This new funding line will allow the newly rebranded ZDF team to accelerate its lending volumes and tap into the significant demand from SME housebuilders and developers for financing in a challenging macroeconomic environment. The UK is relying on these businesses to address the country's acute housing shortage and we take our role in supporting them very seriously," said Nadine Buckland, Co-founder & CEO of Zenzic Capital. "Cynergy is one of the UK's leading challenger banks and in them we have a likeminded capital partner that we look forward to working with in financing the best counterparties and schemes across the UK."
Simon Brown, Head of Lending, commented: "We are one of the few lenders currently offering Stretch Senior Development Financing and this funding line allows us to write more loans than ever before, as well as unlocking larger ticket opportunities. We have ambitious growth targets for 2025 and look forward to utilising our increased lending capacity to help SME clients across the UK deliver high-quality housing projects."
Mike Knox, Executive Director at Cynergy Bank, added: "We are delighted to support Zenzic Development Finance with this new funding line. The team has an impressive track record and a clear vision for the future, and we're excited to be part of their continued growth."
People mentioned:
- Nadine Buckland - Co-founder & CEO of Zenzic Capital
- Simon Brown - Head of Lending at Zenzic Development Finance
- Mike Knox - Executive Director at Cynergy Bank
Companies mentioned:
- Zenzic Development Finance (ZDF) - Provider of residential development finance focused on SME housebuilders
- Zenzic Capital - Leading real estate credit and special situations investment manager
- Cynergy Bank - UK challenger bank providing the funding line
IMAGE: ZDF team - Richard Clouston, Simon Brown , Chris Blowers , Eddie Barnes
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