Avamore Capital completes £13m Finish & Exit deal in Newbury
Avamore Capital has completed its largest transaction to date, a c.£13m Finish & Exit deal in Newbury. The loan size is a 67% increase on the lender’s former top completion (a £7.9 million conversion scheme in Camberley) and represents the lender’s growing presence in the market.
The experienced developers, who have completed similar office to residential conversions were introduced to Avamore when they were looking for funding on a scheme which was part complete. The property suited Avamore’s Finish & Exit product and funds were lent at a rate of 7.5% p.a. over a period of 12 months with an LTGDV of 60%. The 4 former office buildings are being converted into 108 residential apartments, comprised of 1- and 2-bedroom units, each with an accompanying parking space with some overlooking to River Kennet. The completed units will qualify for the government backed help to buy scheme.
The Finish & Exit came with certain obstacles which the Avamore team successfully managed. The lender worked its way through a detailed flow of information between multiple parties and maintained clear communication working closely with the borrower and broker to successfully structure a deal of this scale to the appropriate deadlines.
Once complete, the units will help to deliver new homes into Newbury’s under supplied market and complement the town’s extensive regeneration. The completed properties align with Newbury’s growth plans with much of the town undergoing extensive regeneration. Home to big employers in the technology industry, Newbury has benefitted from strong local opportunities and has good access to other major cities. London Paddington can be reached by train in just over an hour and there are good road links to nearby cities such as Reading, making the properties attractive to commuters and young professionals.
The opportunity was introduced by the London based Debt Advisory business West Rock Capital. Westley Richards, director, said:
“Working with Avamore was an absolute pleasure; the team were hands-on and well-versed about our needs from the beginning to the end of the transaction. Amit Majithia’s detailed experience alongside constant communication with the team meant we were able to get the deal completed efficiently and in a timely manner. I couldn’t recommend Avamore enough and I look forward to working with them again.”
Amit Majithia, pictured, Principal, commented:
“We are delighted to have hit such a milestone so early into the new year. Closing a deal of this size is reflective of Avamore’s ongoing growth. In the past year, we have surpassed expectations and closing our largest transaction yet has put us in a great position for a successful 2020. Over the last year we have seen projects which have encountered delays and cost overruns; where we can establish the underlying issues and be comfortable that these have been resolved, our Finish & Exit product is an ideal solution. It was also fantastic to work with Westley for the first time, he was extremely well organised and helped all parties work together effectively to get the deal over the line. This has been a great accomplishment from all those involved.”