“This was a really interesting deal where the strength of the individuals involved stood out, despite this being their first project together”
– Aidan Lesslie – Avamore Capital
Avamore Capital has completed a £3,304,952 ground-up development finance facility to fund the construction of six detached residential units, marking the first joint project between three experienced construction professionals.
The 18-month loan reflects Avamore’s appetite for backing capable borrowers even where the partnership is newly formed. One of the three borrowers had an existing lending relationship with Avamore, which provided additional confidence in the team’s ability to deliver.
The scheme goes beyond straightforward residential construction. Alongside the six detached homes, the project involves substantial off-site highway works, including widening the existing carriageway and installing a new footway.
These infrastructure elements must reach 90% completion before vertical construction can begin, which required careful sequencing in the deal’s structure. Avamore drew comfort from the local highway authority’s technical acceptance and the sound commercial logic behind completing the highway works at the outset.
The facility was structured at 68% LTGDV over the 18-month term, despite a slightly complex planning backdrop.
“This was a really interesting deal where the strength of the individuals involved stood out, despite this being their first project together,” said Aidan Lessile, relationship manager at Avamore Capital (pictured).
“Having previously lent to one of the borrowers gave us additional comfort, and we were able to take a pragmatic view on the partnership as a whole. The added layer of highway works introduced complexity, but ultimately the fundamentals made sense, and we were pleased to support the scheme.”
Transaction and structuring analyst Joshua Rowe played a central role in the deal, working closely with the borrower and internal teams to ensure smooth execution.
“The structure required a detailed understanding of both the planning position and the timing of the highway works,” said Saif Ali Khichi, underwriter at Avamore Capital.
“We were comfortable with the sequencing risk given the authority’s technical approval and the clear path to delivery. It’s a great example of how we approach more complex development deals with a solutions-focused mindset.”
The completion adds to Avamore’s track record in ground-up development finance, reinforcing its ability to structure tailored facilities where projects carry additional technical or procedural complexity.
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