Avamore Capital saves borrower with fast £7.4m bridging loan
Avamore Capital has completed a £7.4m bridging loan for a scheme in Richmond just 3 weeks after the initial enquiry.
The borrower faced dual pressure with a refinance deadline on Friday 2nd December on the first property along with an urgent requirement for funds to secure an onward purchase.
The borrower’s original lender was not able to follow through on the commitment to fund the scheme and so, Avamore stepped in to save the transaction.
Understanding the time-sensitive nature of the deal, Avamore worked closely with the client to issue terms quickly and in line with their requirements.
Naturally, the borrower was conscious of time and money and so, Avamore identified opportunities to provide additional support.
The original valuation was undertaken on behalf of the previous lender and executed by a firm which is not part of Avamore’s panel.
The lender, considering the reputation of the valuing firm, was able to circumvent its usual policy and agreed to a re-type report in order to save the borrower from losses due to the change in finance providers.
The main scheme consists of a 5-storey mixed commercial and residential unit; commercial units occupy the ground floor, and 20 apartments take up the space above.
At the point of completion, the borrower had already secured a purchaser for the commercial element of the property and was negotiating a block sale on the residential units.
Considering the liquidity of the underlying asset, in addition to securing the exit bridge for the borrower, Avamore was able to provide additional funds by working with one its mezzanine partners on behalf of the borrower for a second site purchase, facilitating the next stage of the development journey.
D’mitri Zaprzala, Managing Director at Avamore Capital commented:
“It’s exactly these kinds of deals that offer us the opportunity to showcase our customer-centric lending.
Even in cases of a larger size, we are always prepared to act quickly, along with offering flexibility where needed in order to drive positive outcomes.
The team always pulls together, delivering solutions that are both time and cost-saving for the borrower and this example was no different.
With the end of the year approaching and many brokers/developers needing to get last minute results before 2023, deals such as this highlight that we can help, right up to the eleventh hour.”