“The key to this transaction was reconciling the build cost variance and ensuring the remaining works were fully understood and appropriately risk-assessed”
– George Ormerod – Avamore Capital
Avamore Capital has completed a £1.47m part-complete development finance facility on a residential scheme where construction was already well advanced at the point of refinance. The facility was structured to help the borrower regain momentum on site and carry the development through to completion, despite several material complications arising during underwriting and delivery.
The transaction presented challenges from the outset. With substantial works already carried out, the lender stepped in at a stage that required careful assessment of what remained to be done and at what cost.
During underwriting, the administration of the building control company added a further layer of complexity, necessitating a full reassessment of compliance and delivery risk to ensure the project could continue without disruption.
Build cost discrepancies also emerged, requiring detailed review and reconciliation before a consolidated position could be agreed with the appointed professionals.
“Despite the complexities presented throughout the process, particularly around the change in building control provision, we were able to work closely with all parties to maintain momentum,” said George Ormerod, relationship manager at Avamore Capital (pictured).
“This facility demonstrates our ability to support projects where certainty and pace are critical, even when unexpected challenges arise on site. The key to this transaction was reconciling the build cost variance and ensuring the remaining works were fully understood and appropriately risk-assessed. By engaging proactively with the professional team, we were able to structure a facility that gave the borrower clarity to proceed with confidence.”
Resolving the cost variance and establishing a clear picture of the remaining works were central to getting the deal over the line. Proactive engagement with the professional team allowed a workable structure to be agreed, giving the borrower the certainty needed to move forward.
The transaction reflects the level of coordination and problem-solving that part-complete development finance scenarios typically demand, where adaptive underwriting and strong stakeholder management are as important as the funding itself.
Please visit:
Our Sponsor
