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Avamore steps in to fund part-complete scheme after original lender backed out

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  • 08/09/2020
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Avamore steps in to fund part-complete scheme after original lender backed out
Avamore Capital has funded a £2.1m part-complete scheme through its finish & exit product.

 

The borrower had taken a bridge to purchase the property and arranged to refinance onto a straightforward development finance facility earlier in the year.

However, the original development lender pulled out of the transaction as a result of the Covid-19 crisis.

The borrower self-funded the initial project works, and Avamore later supported the project with its finish & exit product.

Located on the outskirts of Reading, the property has a gross development value of £3.91m and is a two-storey former office building.

The borrower who had previously completed two similar refurbishment projects required the additional funds for the remaining build of 21 one-bed apartments.

The lender, borrower and broker Vincent Burch worked closely to ensure that the transaction ran as smoothly as possible.

Avamore said successful completion relied on the organisation of the borrower, his ability to demonstrate costs incurred so far and his willingness to be transparent around the project to date.

The broker from Vincent Burch said: “While other development lenders were holding back, Avamore stepped up and expressed an appetite to lend which was a godsend for my client who had been stuck on a bridge through the pandemic.

“The team at Avamore provided terms very quickly and organised the survey within one week. I was supported throughout the application in obtaining the necessary documents to advance. The legals were prompt and the case completed in good time. I will certainly look to using them again, especially as I feel I have a great rapport with both Adam and Phil who were amazing throughout.”

The deal was Adam Butler’s first completion at Avamore; he joined the firm’s origination team during the pandemic.

Butler added: “It was great to work with the team at Vincent Burch on my first transaction at Avamore, they were highly organised, efficient and were clearly acting in the interest of the customer.

“Our part-complete funding product is crucial right now given the unexpected circumstances many developers have had to face as a result of the UK lockdown.

“We are a solution driven lender in terms of our product and our approach, and I’m extremely pleased we were able to support in this situation. We look forward to helping many more borrowers and brokers that are tackling problems driven by the pandemic.”

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