Avamore finances £3.6m Bournemouth scheme completion

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  • 22/01/2019
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Avamore finances £3.6m Bournemouth scheme completion
Avamore Capital has completed a £3.58m facility in Bournemouth, which has fallen under its finish and exit product.

 

Over the last three months, the lender has closed similar deals equating to an aggregate sum of £14m.

The product is for schemes which are not eligible for a traditional developer exit because the project has not been sufficiently completed.

In many cases, these projects do not have final building control sign off or new home warranties which would be a pre-requisite for a straightforward exit bridge or buy-to-let facility.

The Bournemouth project, which had not yet achieved practical completion, saw the conversion and extension of an office building into 28 apartments, 12 of which had already been reserved at the point of completing the transaction.

Avamore refinanced the existing development lender and also brought in junior lender ZSL Capital to provide additional funding for the scheme.

ZSL contributed £340,000 to the deal bringing the total loan to about £3.9m.

The property has an expected gross development value (GDV) of £5.4m.

 

Bridging with development lens

Amit Majithia, principal at Avamore Capital (pictured), said the lender had seen a notable rise in similar enquiries.

He added: “We can assess each bridge deal with a development lens, looking into factors such as the cost left to complete. We also have the in-house expertise to underwrite the deal without the heavy involvement of the monitoring surveyor.

Daryl Thorpe, co-founder and principal of ZSL Capital, added: “We are looking forward to continuing to work with Avamore to provide additional stretch funding on projects where required, not only with the finish and exit product, but also alongside their wider product offerings.”

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