The bridging and development lender has closed similar deals in the past three months, worth around £14m in total.
The finish and exit product can be used for schemes which are not eligible for a traditional developer exit because the project has not been sufficiently completed.
In many cases, the development doesn’t have final building control sign off or new home warranties, which would be a prerequisite for a straightforward exit bridge or a buy-to-let loan.
In such situations, Avamore can provide either early equity releases pre-practical completion or additional liquidity to complete schemes where the existing facility has expired or there is no build facility remaining.
With regard to the Bournemouth scheme – which hadn’t yet reached practical completed –12 of the apartments had already been reserved at the point of completing the transaction.
Avamore refinanced the existing development lender and also brought in junior lender ZSL Capital to provide additional funding for the scheme.
ZSL Capital provided £340,000 towards the deal, bringing the total loan amount to around £3.9m, while the property has an expected GDV of £5.4m.
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Amit Majithia, principal at Avamore Capital (pictured above), said that it was very excited about the rise of its finish and exit product.
“We closed the first of these in Southampton in October, completing our largest deal at our lowest ever rate and, since then, we have seen a notable rise in similar enquiries.
“We can assess each bridge deal with a development ‘lens’, looking into factors such as the cost left to complete.”
Avamore worked closely with ZSL, the borrower and the broker Piragash Sivanesan, founder of Totum Finance, to complete the transaction in around eight days.
Daryl Thorpe, co-founder and principal at ZSL Capital, said that it was delighted to have closed this transaction in such a short timeframe.
“We are very pleased with the outcome, particularly as the transaction has further consolidated our strong relationship with Avamore.
"We are looking forward to continuing to work with Avamore to provide additional stretch funding on projects where required, not only with the ‘finish and exit’ product, but also alongside their wider product offerings."
The borrower was represented by Ellis Jones Solicitors LLP, Avamore was represented by Teacher Stern LLP, while the valuation was undertaken by Lambert Smith Hampton.