Avamore provides funds to save part-complete development site
Avamore Capital has provided a £705,000 loan facility for the development of a part-complete project purchased at auction.
The borrower purchased the development site via an auction before obtaining funding from Avamore to continue the project build, which was at first floor brickwork level when funding was issued.
The original scheme was a vacant plot of land with full planning permission for the creation of an end terrace building of two two-bed duplex flats, and the completed site will have a gross development value (GDV) of £1,075,000.
Avamore was approached at the end of 2020 when the borrower was planning the purchase, to ensure that it was possible to secure funding for a project of this type.
To save the borrower time and money, Avamore adjusted its usual policy and agreed to work with the valuer, who acted alongside the original developer; typically, Avamore will only work alongside its approved panel.
Despite being at an early stage of development, the site fell under Avamore’s Finish & Exit product.
Close to completion, a legal point emerged which could have stalled the transaction; Avamore worked with the solicitors to arrange an indemnity policy less than a day before completion.
Andreas Yianni, relationship manager at Avamore, said: “This deal truly demonstrates Avamore at its best.
“We were able to take on a very early-stage part complete development and draw upon our own expertise to ensure that the borrower was protected and is now in a position to effectively complete the project.
“The team worked hard internally – within a short timeframe – and across a number of service providers to uncover the full background of the deal and move forwards.
“We always take a solution-driven approach but it’s important to demonstrate that we leave no point unanswered.
“That provides comfort to us, the broker and most importantly the borrower and shows that we can be commercial, always putting the customer’s needs first.”
The broker, Chris Borwick from Capital B Property Finance, added: “Avamore displayed a great deal of flexibility throughout the transaction.
“We were working with my customer on a tricky part-complete site but, it was clear from the outset that this was an area of expertise for the team.
“Their can-do attitude really shone through and their determination to get the deal done was clear.
“I am really impressed with the level of thorough due diligence and patience the Avamore Team had.
“I look forward to working with them again. They truly acted with the borrower in mind.”