Avamore Capital lends £1.2m on part-complete project
Avamore Capital has completed a £1.2m finish and exit scheme on a part-complete property in Surrey.
The property, a two-storey detached house, is in the process of being converted into flats.
The completed scheme will have a gross development value (GDV) of £1,955,000.
The loan has been issued for 12 months and has an loan-to-GDV (LTGDV) of 60.3%.
The funds will be used to finance both the purchase of the site and the remainder of the project’s development.
Avamore worked closely with Building Control to ensure that all of the works completed to date were satisfactory and, given the tight timeframes, maintained close communication with the borrower and broker that all times.
Avamore also managed multiple processes in parallel to deal with the outgoing and incoming service providers working on the project.
Richard Sullivan, director of S-M & Daughters Limited and B-IT FIN, said: “This scheme is a part-complete development, that we had valued in the thick of this pandemic.
“Added to the fact that building control and others had literally shut up shop, I felt this case would never complete.
“But thanks to the tenacity and hard work of the guys at Avamore, we have a structured deal for our client that adds real value to their project.
“I introduced Avamore as a funding partner to my client, not a lender, and I believe that is exactly what this project needed.”
Philip Gould, head of underwriting at Avamore Capital, added: “We are incredibly pleased to have completed this transaction.
“As expected, we have had to remain cautious in our lending approach in recent months but the borrower’s experience and hands-on approach reassured us of the strength of this particular scheme and his ability to deliver it.
“All parties involved worked tirelessly to overcome the challenges we faced and completing this scheme during the current circumstances definitely feels like a notable accomplishment.
“We look forward to continuing with our tailored approach to lending as the market continues to normalise over the coming months.”