Zenzic Capital’s recent investments underscore the vital role of development finance in the UK housing market.
- A £17m fund has been extended to five distinct SME housebuilders across the UK, aimed at constructing 43 new residential properties.
- The developments, with a combined value over £25m, span North Yorkshire, Essex, Hertfordshire, and East Sussex.
- These projects include new builds and conversions, reflecting a diverse approach to meeting housing demands.
- Zenzic’s financial support highlights the importance of bridging funding gaps left by traditional banks.
Zenzic Capital’s recent distribution of £17 million in development finance underscores the pivotal role of private investment in addressing the current housing shortage across the UK. This substantial funding is directed towards the construction of forty-three residential market properties, managed by small and medium-sized housebuilders across five distinct geographic areas.
The developments receiving this financial backing are widely distributed throughout the UK, with projects located in both North Yorkshire and the South East. Specifically, these include the construction of five detached houses in Scorton, North Yorkshire, which offer private gardens and garages, as well as nine new-build houses in East Ayton, North Yorkshire, developed by seasoned builders.
In the region of Brentwood, Essex, the initiative includes the release of equity and the construction of twelve new homes in a protected green belt area, highlighting the delicate balance between development and environmental considerations. Meanwhile, Welham Green in Hertfordshire sees the conversion of a former pub into three apartments alongside the creation of six additional houses, offering a mix of preservation and innovation.
Seaford in East Sussex benefits from the conversion of a former public house into four apartments, complemented by the development of four duplex houses and a retail unit. This blend of residential and commercial space addresses local needs while catering to broader market demands.
Simon Brown, head of development finance lending at Zenzic, emphasised the firm’s role in providing crucial capital to SME developers. By stepping in where traditional banks may hesitate, Zenzic not only facilitates these projects but also fortifies its standing in the industry. ‘Zenzic has established a strong reputation for providing SME developers with much needed capital to address the financing gap created by bank retrenchment in recent years,’ Brown remarked.
The strategic financial involvement by Zenzic Capital in these projects underscores a broader trend of private entities filling gaps left by traditional banking institutions in the housing sector.
