Belgravia Capital to Be Acquired by Phoenix Company

A Phoenix-based finance company said Tuesday it has agreed to acquire Belgravia Capital Corp., a fast-growing commercial mortgage banking firm.

Publicly held Finova Group Inc. plans to pay $90 million in cash and stock to buy Irvine-based Belgravia, which is privately held. Finova may pay up to $30 million more over the next three years if Belgravia meets certain net-income requirements.

Finova officials said Belgravia is profitable and would enhance Finova’s earnings.

The two companies, which work different ends of the financial industry, would have combined annual volume of nearly $10 billion.

Belgravia specializes in lending to developers of mobile home parks and self-storage facilities, while Finova handles nearly $8 billion a year in loans, leases and secured financings, said O.B. Benskin, Belgravia’s marketing director.

Benskin said that the deal is expected to allow Belgravia to achieve its goal of becoming one of the top five lenders in its markets over the next few years. “We reached a position in our growth where we were looking for larger resources to get behind us, so we could provide more lending,” he noted.

Belgravia Chief Executive R.J. Brandes, who founded the company 12 years ago, would remain as its chief executive if the acquisition proceeds, Benskin said.

Belgravia’s nationwide work force of about 100 employees, including 50 at its Irvine corporate headquarters, would be expanded, he said.

Some of the company’s 20 offices may be consolidated with Finova’s, but no employees will lose their jobs, he added.