Avamore Capital has announced that it has provided an £895,000 development loan for a two-home ground-up scheme in Bromley, backing a first-time developer on a 15-month facility structured at 70% loan-to-GDV.
As part of the funding package, Avamore agreed to fund the majority of professional costs and Community Infrastructure Levy (CIL) payments directly, without requiring formal monitoring surveyor interim reports for those items. The approach was designed to streamline the development process and reduce administrative delays through the build programme.
The transaction came with a number of considerations. The borrower was young, and while experienced, this was their first ground-up development project. More pressing was the planning permission, which was due to lapse within approximately two months of the loan completing.
Following a detailed review, Avamore was satisfied the borrower had a robust plan to commence works and preserve consent within the required timeframe, and took a pragmatic view of the developer’s wider track record and capability to deliver.
The deal was introduced by Adam Klein, director at Atlas Property Finance.
“Avamore Capital were a pleasure to work with, and we are delighted to have successfully completed this transaction,” said Klein.
“The team, particularly Aidan, Saif, and Owen worked diligently to ensure a smooth process, taking into account the borrower’s young age while recognising their proven track record of delivering successful schemes and the strength of the professional team supporting the project. This enabled us to structure a facility that provides strong cash flow throughout the development.
“This deal further strengthens our relationship with Avamore, who have supported several of our clients over the past few years, and is a testament to their solution-driven approach to lending.”
“Although this was the borrower’s first ground-up development, we were confident in their ability to deliver the scheme,” said Aidan Lesslie, relationship manager at Avamore Capital (pictured).
“The project fundamentals were strong, the location was attractive, and the borrower had demonstrated a clear strategy for commencing works before the planning permission expired. It is a good example of how we can support developers at key stages of their growth journey.”
Saif Ali Khichi, senior credit officer at Avamore Capital, added, “From a credit perspective, we were comfortable with both the borrower’s approach and the underlying project viability. While the planning consent was approaching its expiry date, the borrower provided clear evidence of the steps being taken to implement the planning permission before its expiry and maintain programme certainty.
“By focusing on the overall risk profile and execution strategy, we were able to structure a solution that worked for all parties, including funding the majority of professional fees and CIL costs directly without requiring formal Monitoring Surveyor interim reports for those items, helping to support efficient project delivery and minimise administrative delays.”
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