Avamore Capital completes double deal with repeat borrower

By Bridging Loan Directory 11th August 2022

Avamore Capital has closed two deals worth £1.6m with the same borrower in the space of a week.

The experienced property developer has already completed one deal with Avamore and having built a strong relationship with the team, he returned with additional schemes.

The first of the two loans was a development loan with a facility of £905,036 for a property in Edmonton.

Initially, the borrower planned to undertake a corporate acquisition to purchase the property, however the process was set to be costly, due to the associated legal fees and so instead, completed in cash upon Avamore’s suggestion.

Avamore then provided a facility for the construction of a three-storey apartment block of 5 units.

Changing the approach saved the client thousands in legal fees as the Avamore loan switched from a complicated structure to a straight-forward refinance for a development loan.

Following the completion of this transaction, Avamore then closed on a further bridge of £702,390 for a separate site in Croydon.

The borrower was purchasing an existing property with planning already in place for a three-storey apartment block of 8 units and was under pressure from the vendor to complete.

There was, however, a restrictive covenant on the title which needs to be removed prior to starting works on site.

The borrower plans to demolish the existing property on the site to construct the apartment block.

Considering the urgency for completion, Avamore revised the deal terms adjusting to a bridge, facilitating the quick purchase – securing the site for the borrower – and allowing for additional time to arrange the remedial works.

Once the borrower has addressed the requirements, Avamore will refinance the deal onto a development loan.

In addition to providing flexibility for the borrower, Avamore will also be arranging the onwards facility with significant cost savings.

Having already paid an arrangement fee on the initial bridging loan, the borrower will only be required to pay the difference between this amount and the development facility fee, which will mean he makes a saving in excess of £14K.

Adam Butler, Head of Sales at Avamore Capital commented:

“This is a fantastic example of our relationship focused lending. We create long lasting partnerships by being solution driven, cost conscious and sensitive to the borrower’s situation.

We’re always prepared to act quickly and find ways to help borrowers, particularly when they are facing difficult circumstances.

What’s really valuable for us, is learning from these scenarios and being able to tailor our offering, better providing for borrowers when they return in the future.”

The borrower added:

“It’s not a difficult choice to keep working with Avamore based on the great relationship we’ve managed to build in a short space of time.

Their communication is always seamless, and this is valuable when you’re under time pressure on a project.

Throughout each of these processes, Avamore remained honest and reliable, getting deals over the line quickly and efficiently.

They also went over and above to find opportunities for cost savings which was naturally a huge benefit for me personally.

I am now looking forward to working with the asset management team as I complete these projects and have no doubt they will continue to be as helpful and engaged as ever.