“Every project comes with its own quirks, and in this case, it was about understanding the borrower’s cost position and creating a facility that worked around it.”
– George Poole – Avamore Capital
Avamore Capital has completed a £926,000 ground-up development finance facility, structuring the deal around a day-one advance that allowed the borrower to refinance works already completed on-site and redeploy capital across the scheme.
The facility was designed to accommodate the borrower’s evolving cost profile, with flexibility built into the structure from the outset. Rather than fixing the capital stack against a static project plan, Avamore worked closely with the borrower to create a facility that could adapt to real-time requirements as the development progressed.
Day-one advance improves liquidity
The inclusion of a day-one advance was a defining feature of the deal. By reimbursing costs already incurred on-site, Avamore bridged the gap between the developer’s initial equity outlay and ongoing funding needs, improving immediate liquidity without disrupting site momentum. For developers managing rising build costs and tighter cash flow, the ability to recycle committed capital efficiently is increasingly significant.
The transaction also involved a considered underwriting process, given the complexities surrounding the borrower’s cost base and project timeline. Avamore’s relationship management and underwriting teams worked collaboratively to ensure the structure remained sound while still delivering on speed, completing the deal in three weeks from legal undertaking to completion.
“This deal really highlights the importance of flexibility when structuring development finance,” said George Poole, relationship manager at Avamore Capital (pictured).
“Every project comes with its own quirks, and in this case, it was about understanding the borrower’s cost position and creating a facility that worked around it.”
“The Day 1 advance was particularly impactful, as it allowed the borrower to unlock capital already invested and redeploy it effectively across the scheme. Being able to deliver that alongside a quick turnaround made a real difference to the borrower.”
Balancing speed with careful analysis
Spencer King, underwriter at Avamore Capital, said the transaction required a careful balance between pace and rigour. “From an underwriting perspective, this was a transaction that required a balanced approach between speed and careful analysis,” he said.
“The complexity around costs and timing meant we needed to be both thorough and realistic, ensuring the deal was structured in a way that protected all parties while still meeting the borrower’s objectives. The strength of the internal collaboration played a big role in achieving that, and completing within three weeks is a great outcome for everyone involved.”
The deal adds to Avamore’s track record of supporting ground-up development finance across complex and time-sensitive scenarios, from early-stage structuring through to delivery.
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