Cynergy Bank grows business in North – over £135m of financing in 2021
Cynergy Bank’s North Office celebrates its five-year anniversary by posting record lending volumes for 2021. Opened in May 2017, with just two employees, the Manchester office ended 2021 having advanced over £150m of new lending last year alone. The team, based in the Spinningfields District of Manchester, now comprises 30 employees. This includes a team of 10 lending into the property and commercial sectors and 20 employees focused on asset-based lending through its subsidiary Cynergy Business Finance, which began operating mid-way through 2021.
2021 saw new lending to the Property Sector of over £100m and over £35m in the fast-growing business and commercial sectors. In total, across 2021, the North Office funded over 1,000 residential units including Houses in Multiple Occupation (HMO) purpose-built student rooms, and newly built apartments. In addition, transactions included 823 care home beds and 261 hotel rooms. The lending assisted customers with new acquisitions to aid expansion plans, refinance of existing assets to raise new equity for future investment and the development of existing portfolios.
New customers included leading residential developer DeTrafford, and within the care sector, Renal Health and The Careline Lifestyle.
The DeTrafford Group is one of the North West’s most prominent residential developers. A £9m loan was provided to assist with the refinance of a completed development at Cavendish Place in Bowdon, near Hale. This is a prestigious and highly sought after village within Cheshire’s ‘golden triangle’ with 15 high specification, two, three and four bed properties – split over 12 apartments and three fully self-contained houses. Having developed the properties, the group were keen to retain some units as part of their strategy to build a longer-term investment portfolio.
Renal Health received a loan of £12.5m to assist with the acquisition of Century Healthcare Limited which resulted in the group expanding their operation from one large specialist home to 9 care homes with 321 beds. Renal Health Limited are leading providers of high-quality nursing and residential care, based in the North-East and North-West of England. The debt package included an element of CBILS funding, the Government backed scheme to aid businesses through the Covid pandemic.
Cynergy Bank also advanced £17m to The Careline Lifestyles Group. The Careline Lifestyles Group, established in 1986, is highly regarded and independent provider of high-quality nursing and residential care, based in the North-East of England. Offering a total of 271 beds, the Group specialise in acquired brain injuries, neurological issues, learning and physical disabilities as well as residential and social care for the elderly. The loan refinanced the portfolio of 9 homes and will assist with future expansion plans.
Rob Dawson, director property finance, North, Cynergy Bank commented, “We pride ourselves on working with our clients to understand their business needs and aspirations. With our local, skilled relationship managers, we quickly learn our client’s needs, we understand the market and, unlike mainstream lenders, can deliver certainty at speed. The digital transformation underway at Cynergy will enhance this further and our aspiration to deliver £1bn of new lending across the north is well on track.”
