Avamore Capital defies pandemic to hit £150m loan redemption milestone
By David Craik -
Bridging and development lender Avamore Capital has hailed another ‘important milestone’ after achieving £150m of total loan redemptions.
The company revealed that it had suffered no losses from the repayments despite market fluctuations caused by recent Brexit and Pandemic uncertainty.
It said the redemption which helped it hit the mark was its largest ever development to date – a £7.9m office to residential conversion project in Camberley.
It follows hot off the heels of the group reaching £250m in total lending in January.
Of the loans which have been redeemed, Avamore has seen repeat business from a number of borrowers and brokers. In 2020, Avamore closed £13m worth of deals with the same borrower, these are now split between redeemed and live loans with further transactions in the pipeline.
Avamore, whose loan sizes range from £400,000 to £5 million, highlighted its ‘commitment to prudent credit analysis and a balanced approach to underwriting’ for helping it reach its redemptions target.
It also hailed its customer centric ethos, taking a solution driven approach’ to its lending and being ‘flexible around real-life scenarios’.
It praised the work of its Asset Management Team streamlining borrower processes to make it as easy as possible to move through a project.
The team has recently adopted Shieldpay, an online payment platform which, Avamore says, is helping to enhance services providing greater transparency and flexibility.
The tool provides oversight on the movement of funds allowing borrowers to better manage expectations and Avamore has, in some instances, been able to make payments directly to local authorities and service providers easing the burden for the developer.
Furthermore, the Asset Management Team effectively revised its operations to ensure the continuity of projects throughout the COVID crisis, were flexible with virtual site visits and used its in-house expertise and judgement to ensure drawdowns continued quickly and efficiently.
“Achieving £150m of redemptions is a hugely important milestone to be acknowledging.
The fact that we have done this without any impairments to capital or interest is testament to both the considered approach our Credit Analysts and Underwriters take to transactions and to the hard work of our Asset Management department who have successfully supported our borrowers, in what has naturally been a challenging year for them,” said Principal Amit Majithia.
“It is always a thrill to know that being repaid on a loan is not only a redemption statistic for us, but it means that another one of our borrowers has successfully completed a scheme, and has delivered more residential units to the market, and is hopefully preparing to start the process all over again with a new development.”
He said that Avamore has ambitious plans to continue growing its loan book over the course of the next 3 years but “will always strive to ensure that this is done prudently as this is a true reflection of the strength of our business.”