Avamore Capital completes a £6.2m loan for development of two sites in Bedford

By Bridging Loan Directory 24th June 2024

Avamore Capital, a leading bridging and development finance lender, has successfully completed a £6.2 million loan for a borrower who plans to develop two sites in Bedford.

The project includes 31 two-bedroom flats and 15 one-bedroom flats, arranged in two blocks over ground to fifth floors.

There will be 23 car parking spaces provided (including disabled spaces) as undercroft parking.

The borrowers are two developers, one benefiting from an impressive track record, having completed successful developments valued between £889,000 and £89 million since 2015.

Their expertise and proven capabilities gave Avamore Capital the confidence to support the project.

Despite the project not being wind- and water-tight, Avamore Capital stepped in, providing the highly experienced developers with a part-complete development loan, a popular product that Avamore brought to the market several years ago.

The site is located on the southern periphery of the town centre near the Rope Walk Retail Park which provides retailers including Lidl, Halfords, Curry’s and Hobbycraft.

The town centre, including the Harpur Centre, is within a five-minute walk of the subject Property and offers a pedestrianised area and several High Street retailers including Superdrug, Tesco, Boots the Chemist, Next and Primark.

The property is well connected for transport with the mainline railway station being within a 10-minute walk, providing Thameslink and East Midland train services between London, Brighton and the Midlands.

Bedford station is well placed and will be located on the East West rail link route which in time will provide direct services to Cambridge and Oxford.

The loan, which was offered on a 24-month term at a rate of 7.5% + BBR, is just one of many completed since the beginning of the year.

D’mitri Zaprzala, CEO, Avamore Capital said:

“We’ve seen an uptick in part-complete development schemes in the last few months and this one was almost a perfect case study of where we can assist.

Great borrowers, and a great scheme, which had experienced delays and the existing funder no longer being suitable.

Whilst we see a lot of schemes that are nearer the end of their development, we love those which are much earlier in the process.

We are already working hard with the borrower to get the scheme moving again”.