Avamore Capital completes £1.6m development loan for borrower’s first residential project
Avamore Capital has completed a £1,624,944 development deal on a mixed-use property in North London for a borrower in the early stages of their career.
Currently, the property’s lower ground and ground floors are for commercial use, having previously been a dry cleaner. Two residential flats occupy the first and second floors.
The site benefits from prior approval for change of use on the retail floors to create two further flats within this space.
Planning permission has also been granted for a mansard extension, in addition to front and rear extensions to create an additional flat to compliment those already in existence, meaning a total of 5 units will be created.
This will be the borrower’s first principal development, however, they benefit from 13 years of experience as a main contractor specialising in residential refurbishments and, in more recent years have run their own design and build construction business.
Considering the borrower’s background, Avamore was able to lend and once again demonstrated its flexibility, taking into consideration the wider picture and giving a first time developer a step up into the space.
Over the course of the transaction, there were complexities and unexpected challenges however Avamore remained commercial and solution driven in order to get the project over the line, understanding the importance of this deal for the borrower; a part refurbishment, part development loan was offered at 7.75% + BBR p.a..
Henry Manley-Cooper, Head of Investor Relations at Avamore Capital said:
“In a time where there’s a national housing shortage we’re supportive of first-time developers and do our best to give them the opportunity to begin making a name for themselves and start building.
At Avamore, we try and get behind the person coming to us with a project and not just the numbers.
This deal was a key example of this, where even if the experience isn’t textbook, we can adapt and offer alternative solutions that fit their position.”