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Avamore completes largest bridging deal worth £6.3m on 104-unit development

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  • 13/11/2018
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Avamore completes largest bridging deal worth £6.3m on 104-unit development
Avamore Capital has completed a £6.3m exit bridge facility on a development of 101 residential apartments and three commercial units as it looks to extend into the higher value bridging market.

 

The deal is its largest in terms of value and number of units involved and was completed at a rate of 0.59% per month.

Upon completion the property, which is close to Southampton Marina, is set to have an expected gross development value (GDV) of £20m while 58 of the residential units have already been sold.

The Avamore funds will be used to pay the existing lender and to release working capital to the developers and its shareholders.

Some of the funds will go towards outstanding snagging works and final s106 payments to the local authority.

The original developer went bust during the last crash and left a part-built development which was subsequently acquired by Shojin to complete and add value by obtaining planning for additional units.

 

Expand to bigger deals

Avamore principal Michael Dean said he believed the deal showed the lender could be competitive in the large bridging loan space and that it was looking to work on similar projects.

“The completion has confirmed our ability to be competitive on rate while also maintaining our strong service levels,” he said.

“Furthermore, the borrowers came to us following a long-standing relationship of four years demonstrating that we really are focused on genuine partnerships.”

Jatin from Shojin added that Avamore’s experience helped to complete the deal within the tight time frame.

 

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