Avamore Capital,
the London based short term and bridging finance lender, has provided a £2.1m finish and exit loan for a part-complete scheme in Reading.
The property is a part-complete former office building with two-storeys and a GDV of just over £3.9m.
It is understood that prior to the loan, the borrower had completed two similar refurbishment projects and required the additional funds for the remaining build of 21 one-bedroom apartments.
Earlier in the year the client had acquired a bridging loan to purchase the property and arranged to refinance onto a straightforward development finance facility.
However, due to implications caused by the Covid-19 pandemic, the original development lender pulled out of the transaction, leaving the borrower to self-fund the initial project works.
In order to fund the rest of the project, Avamore, the borrower and the broker from Vincent Burch were required to work closely and communicate frequently to ensure the transaction ran as smoothly as possible.
Successful completion was dependant on the organisation of the borrower, his ability to demonstrate costs incurred so far, and his transparentness about all aspects of the project to date.
Avamore supplied terms quickly and organised the survey within just one week.
The borrower was represented by Notary Express, Avamore was represented by Fieldfisher, and the valuation was undertaken by Kempton Carr Croft. The monitoring surveyor was Pride Consulting IMS.
Completed within just four weeks (including underwriting), the £2.1m loan was provided on a 12-month term.
“Dealing with Avamore from start to finish has been a great journey,” a spokesperson from Vincent Burch commented.
“While other development lenders were holding back, Avamore stepped up and expressed an appetite to lend which was a godsend for my client who had been stuck on a bridge through the pandemic.”
“I was supported throughout the application in obtaining the necessary documents to advance.
“The legals were prompt and the case completed in good time.”
The deal was Adam Butler’s (relationship manager at Avamore, pictured above) first at the lender.
“It was great to work with the team at Vincent Burch on my first transaction at Avamore; they were highly organised, efficient and were clearly acting in the interest of the customer.
“Our part-complete funding product is crucial right now given the unexpected circumstances many developers have had to face as a result of the UK lockdown.
“We look forward to helping many more borrowers and brokers that are tackling problems driven by the pandemic.”
Original article featured here…
The news comes after Avamore recently revealed it had secured a total of six deals for the same borrower since the beginning of this year – totalling circa £8.2m.