The deal was completed with broker Karen Raby at Hank Zarihs Associates on the back of a £2.7m bridging loan earlier in the year.
The mixed-use permitted development conversion scheme has planning consent for an additional floor and will result in 50 new units.
The loan was agreed at 6.5 per cent interest.
Nikolay Petkov, principal at Avamore (pictured), said the lender was pleased to offer a 6.5 per cent rate on such a large transaction and praised the adviser.
“Broker Karen Raby was very impressive managing multiple moving parts on this deal. Combined with constant and open communication this meant we were able to complete efficiently despite challenges,” Petkov added.
Avamore dealt with four different legal teams and ran construction due diligence alongside the underwriting process so that the borrower could start building straightaway.
Bridging loan conversion
The client secured a £2.7m bridge from Avamore to purchase the property in a tight timescale in May 2019 and this was converted to the development loan.
Raby, broker at Hank Zarihs Associates, said: “It’s the second time we’ve worked with Avamore on a bridge and subsequent development of a scheme.
“The borrowers met with members of Avamore’s credit committee and this resonated extremely well with them. It’s important lenders understand that, as a broker, our relationship with each client is different,” Raby added.
The borrower had significant previous experience delivering large developments overseas.