Avamore Capital provides funds to save part-complete development site
Avamore Capital has provided a £705K loan facility for the development of a part complete project. The borrower purchased the site via an auction before obtaining funding from Avamore to continue the project build. The scheme 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 2 x 2-bed duplex flats.
The completed site will have a GDV of £1,075,000. The borrower first came to Avamore at the end of 2020 when he was planning his purchase to ensure that it was possible to secure funding for a project of this type.
Avamore, taking a solution driven approach, was able to guide the borrower with the initial steps to secure a successful purchase from auction and then later worked on issuing the funds against the part-complete scheme.
Considering the nature of the property, there were challenges to address throughout the loan however, Avamore remained dynamic in its approach and relied heavily on its in-house expertise to ensure that it could get comfortable around the relevant points.
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 however, in this instance it was able to make a small adjustment to make a significant difference to the outcome for the borrower.
Whilst the site was at a very early stage in the build, it still fell under Avamore’s Finish & Exit product. This led to Avamore managing multiple stakeholders in order to understand the level and quality of works to date and, to identify any potential risks which could occur later on in the project.
Close to completion, a legal point emerged which could have stalled the entire transaction.
Avamore, acting as the borrower’s second line of defence worked closely with the solicitors to arrange an indemnity policy less than a day before completion; this ensured that the borrower was appropriately safeguarded from challenges later on in the process.
Andreas Yianni, Relationship Manager commented:
“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.”
Broker, Chris Borwick from Capital B Property Finance commented:
“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.”