Avamore Capital completes £940k development finance facility
Avamore is delighted to have closed its second development deal with Braintree based borrowers, Raouf Belmouloud and Ben Butkus, Managing Directors of Grace Charles Property. The transaction faced a number of challenges and Avamore used its own partnerships in order to get the deal across the line. The approach reflects Avamore’s relationship driven ethos and the transaction consolidated partnerships with both the borrowers and the broker.
One of the borrowers, Raouf Belmouloud commented:
“[This is] the second time around [we have worked with Avamore and] it is clear that Avamore is a fine example of what a true lending partner should be…the key is that you have a lender that is part of your team, understands your challenges and is flexible in their approach when you come across bumps on the road. With Avamore Capital we have always spoken directly to decision makers, making the process swift and painless. As a developer you will always face challenges, delays or cost overruns but with Avamore they have always supported us in our journey. They truly focus on growing long-term relationships rather than putting profit before their clients.”
The c.£940,000 facility was lent on a 12-month term at 9% p.a reflecting the significant commercial aspect of the development. In the final stages of the transaction, Avamore organised additional equity and a second charge through a junior lender to ensure that the deal was completed within the required timeframe. Had the lender not stepped in to fill the funding gap, it is unlikely that the borrowers would have been able to complete the purchase on time. Avamore took a dynamic, problem solving approach to the transaction and remained solution driven until the loan was closed. The funds will be put towards the purchase of the property and construction works. The existing 3-storey mixed use building on Braintree High Street will be converted into seven 1-bedroom residential units and a large commercial unit will be maintained on the ground floor.
Zuhair Mirza, pictured, Principal at Avamore commented:
“It is great to work with Ben and Raouf once again. They are a brilliant team and as a lender we like being able to support and see first-hand the journey SME developers go through. Their last project was well organised and executed and I have no doubt that this development will be handled in the same way. This deal reflects our relationship driven approach and for those that we have strong partnerships with, we will always go the extra mile to achieve the best outcome possible, we are driven to tackle challenges head on to ensure the same quality of service each and every time.”