Avamore Capital completes £1.5m refurbishment loan on former pub in East London.
Avamore Capital has completed a £1.5m refurbishment loan on a former pub in East London.
The broker, Henry Dannell, introduced the borrower – who owned a public house which had been in his family for many years – to Avamore and was looking to convert the property into 4 residential units.
The site had been vacant for over 10 years and so the borrower obtained planning permission to convert the two top floors into one-bedroom and two-bedroom flats as well as add a three-bedroom flat onto a third floor.
In addition, the borrower intended to secure further enhanced planning and had submitted an application for a further two-bedroom flat to be added on the ground floor.
Avamore, therefore, structured an additional facility to be unlocked as soon as planning came in for the extra construction work.
The lender was able to provide certainty of funding for the developer whilst also saving both time and money as the borrower waited for approval by the local council.
The additional facility can be drawn whenever planning is consented, meaning there is no need to reassess the case and the borrower will face no delays in being able to begin the works.
Avamore took this flexibility one step further and was amenable to the borrower’s limited previous experience by balancing this against the appointment of a 3rd party main contractor, who Avamore have a strong existing relationship with.
Matt Karagul, a Specialist Finance Advisor from Henry Dannell said:
“It was an absolute pleasure to work with Avamore on this deal.
They are really hands on and proactive with a tenacity to get the deal over the line.
They’re happy to be pragmatic and in this instance where the borrower had limited development experience, they went above and beyond to offer solutions that worked for everyone involved.”
Adam Butler, “Head of Sales at Avamore Capital (pictured above), said:
“These are the kinds of deals that Avamore are really about; being dedicated to the success of the borrowers we support.
In cases like these, that means looking at the bigger picture and presenting options that speak to each developer’s specific requirements.
We look forward to doing more with Henry Dannell and the borrower in the future.”