Two of the blocks have been completed and comprise 18 apartments. Avamore confirmed that the developers will use the loan to complete the two remaining blocks, which will contain 11 apartments, and feature natural stone facades.
The completed project is expected to have a gross development value (GDV) of £4.185m and the loan has been issued for 12 months.
The borrowers were introduced to Avamore by Pilot Fish and this is the second transaction which Avamore has closed with the broker in four weeks.
That followed a busy three months at the end of 2018 when the lender closed similar deals equating to an aggregate sum of £14m.
‘Hybrid’ transaction required flexibility
One of the borrowers in the Market Deeping deal, Mike Greene, admitted his scheme is unusual, in part due to the project being half-complete.
He said: “The scheme was an unusual one and I think few lenders would have taken the innovative approach which Avamore did.”
Richard Jones, managing director at Pilot Fish, said: “We knew that we needed a flexible, innovative lender that would consider refinancing a part-completed development.”
Zuhair Mirza, principal at Avamore, added: “This ‘hybrid’ transaction highlights our ability to assess unique cases in-house and to structure deals to work around the borrower. We will always do everything we can to get a deal over the line if it is supported by the credit team.”