The lender came to the aid of an experienced developer who was creating a 14-residential unit development in Braintree, Essex (pictured above).
The facility will run for 18 months, be secured against the site and represents a loan to GDV of just under 60%.
Comprising nine apartments, three terraced housed, a three-bedroom semi-detached house and a three-bedroom detached house, the site is expected to be completed within nine to 10 months with the units expected to be fully sold within 15 months.
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Zuhair Mirza, principal at Avamore Capital, said it was delighted to have completed the facility and is excited to see the scheme progress to completion.
“The completion of this facility reinforces our #letsgrow campaign strategy of helping SME developers expand.
“It also highlights our commitment to regional development and delivering housing that is affordable for all.”
Avamore was represented by Laura Brown and Phil Berry at Teacher Stern LLP, while the customer was represented by Adil Khan at Maxims Solicitors.
Michael Dean, principal at Avamore, added that it was continuing to build its refurbishment and development capabilities and aims to see up to half of its loan book consisting of development loans.
“We have bolstered the team and have the capacity to process development loans quickly and effectively.
“Our loans are priced highly competitively and we can offer market-leading LTVs if required, even for inexperienced developers.”