Avamore Capital funds £624,505 part complete development loan
Avamore Capital has completed a £624,505 part complete development loan with Independent Banking Professionals in Nottingham.
The borrower purchased the site, in March 2021 with their own equity. They obtained planning permission to construct four three-bedroom houses and one four-bedroom house, with a combined forecasted GDV of £1,375,000 once complete.
The deal represents Avamore Capital’s continued appetite in the Midlands as the lender continues to actively increase its presence across all regions in England.
The borrower is a strong sponsor with extensive experience, having constructed three similar ground-up projects previously.
In addition to self-building and managing all works themselves, they have also self-funded the project to date putting Avamore in a comfortable position to lend at 9% + BBR for 18 months.
When the borrower first approached Avamore, three of the plots were constructed to roof level, pre-wind and watertight, with the work on the remaining two plots having not yet commenced.
All of the works completed to this stage had been fully self-funded however they later understood the benefits of having additional financial support from a specialist lender.
They then decided to concurrently secure finance on top of the equity portion put in to take the project to completion.
Helen Sallis, Director at Independent Banking Professionals commented:
“Both the speed and the service demonstrated by the team, made them an absolute pleasure to work with.
They were diligent in chasing all outstanding items alongside providing regular updates to us on the progress of the deal so that the whole process was as smooth as possible from start to finish.
While this was our first time working with Avamore Capital, given their proactive underwriting process and ability to be flexible on the terms of the deal when amendments were required, my hope is that it won’t be the last.”
Sabinder Robinson-Sandhu, Director of Operations at Avamore Capital commented:
“This deal truly represents what Avamore is all about.
We were able to take on a part complete development with each plot at built to various stages, drawing upon our expertise to ensure that the borrower is now in a position to effectively complete the development, after investing a large amount of their own time and money.
During a period of market flux, this is an example of us demonstrating our value as a specialist lender and supporting strong borrowers to see their project plans through.
In short, we’re continuing to do what we’ve always done, just better.