Avamore completes £1.6m bridge to development loan

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  • 04/12/2018
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Avamore completes £1.6m bridge to development loan
Avamore Capital has completed a £1.6m bridge to development loan on a facility in Ashford, Surrey.

 

The lender said there has been a rise in the number such deals it has seen, with such transactions requiring a collaborative approach between the borrower, broker and lender.

In the Ashford deal a commercial bridge loan against the property worth £790,306 was issued earlier this year.

In both the bridge and development facility there were a number of unexpected challenges ahead of completion, Avamore said.

But the lender completed on the bridge and then development within two months, with the development loan issued at 0.75% per month.

The funds will be used to convert a former watch factory in Ashford, which has been an office space over the last 10 years.

 

Alternative exit strategy

The site will house nine flats, seven one-bedroom and two two-bedroom properties, which will be near the local high street and train station.

They also have a strong rental value, should the borrower need an alternative exit strategy.

The value of the property is currently £1.26m with an expected gross development value of £2.4m following the full development.

Nikolay Petkov, principal at Avamore said: “We are looking forward to seeing the Ashford property progress and are delighted that we have been able to refinance the bridge onto a development facility.

“As a lender, we enjoy working on these schemes because it really gives us the chance to support the borrower throughout the entire process. We hope to do more deals like this in the future which reflect our relationship driven ethos.”

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