Avamore Capital has announced that it has completed a £2.18m ground-up development facility to support the construction of a nine-flat residential scheme.
Introduced by Kelsey Phillips at Arose Finance, the transaction presented several complexities. The borrower was a first-time developer with no previous construction or development experience, while the site's location, adjacent to a railway line, required compliance with a Basic Asset Protection Agreement (BAPA).
The scheme also featured an unconventional unit mix, including several five-bedroom apartments, requiring careful consideration of the project's exit strategy and market demand.
Despite these challenges, Avamore worked closely with the broker and borrower to understand the project's strengths and deliver a funding solution tailored to its specific requirements.
“We are delighted to have partnered with Avamore to deliver a fantastic outcome for our client," commented Kelsey Phillips, head of specialist finance at Arose Finance Limited.
"This complex nine-flat ground-up development required considerable diligence, collaboration and resilience from all stakeholders. Avamore adopted a pragmatic and commercial approach, looking beyond the borrower’s limited development experience and working closely with Arose to address the outstanding BAPA requirements, non-material planning amendments and unconventional unit mix. Their support extended beyond simply providing funding and helped provide the client with the certainty and confidence needed to move forward.”
Adam Butler, sales & marketing director at Avamore Capital (pictured), noted, "This transaction is a great example of the value of taking a solution-led approach to lending.
"While the borrower was new to development and the scheme had a number of complexities, we focused on the overall strength of the opportunity and worked collaboratively with all parties to structure a solution that gave the client the confidence to move forward. It's another demonstration of how Avamore supports projects that require a more considered approach."
Saif Ali Khichi, underwriter at Avamore Capital, added, "This deal highlights exactly why specialist lending exists. It wasn't simply about assessing the numbers; it was about understanding the wider context of the project, from the BAPA requirements to the borrower's lack of development experience and the scheme's unusual unit mix. By taking the time to assess the risks holistically, we were able to structure a facility that supported the client's ambitions while remaining aligned with our lending approach."
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