Avamore Capital, the specialist bridging and development lender has provided a circa £553k development facility to a new borrower and first-time broker towards the purchase of a property in the Knowle area of Bristol. The property, which is less than two miles from Bristol city centre is a former GP surgery and will be converted to four executive flats.
The loan provided by Avamore Capital has permitted the borrower to make extensive works to the property. Plans are in place to convert and extend the Victorian styled two storey doctor’s surgery into four modern two-bedroom flats with an anticipated sales price of £210k each. This type of property is currently in high demand throughout the Bristol area, which is experiencing high growth, despite the impact Brexit has had on the housing market.
There are additional plans to develop the exterior of the property as part of the planning consent, with bicycle and bin storage to complement the ample car parking spaces being created for tenants use. Thanks to the facility provided by Avamore Capital, the borrower is on track to complete all construction and developments on the original timeline.
The 9 month loan is competitively priced and provides a loan to GDV of just under 70%. Once construction is complete the borrower has plans to sell on the open market. Avamore Capital analyst, Vuong Ngo remarked about the strong market fundamentals: “Recently, the market in the South West of England has outperformed all other regions, experiencing a price growth of 2.2% in house prices over the last quarter. Taking into account this current demand towards the Bristol market, all early indications are that the sale will run smoothly.”
Michael Dean added that “we are delighted with the facility offered for our new client. Having closed the first tranche of funding for Veronica and Jim we are excited to help them realise their vision for the property. This type of deal is right in our sweet spot. Our niche is property conversions and commercial bridging, a space we feel we can offer market leading leverage and pricing. In any event, we are delighted to work with new customers and a new broker, Kennedy”.
Veronica, the customer from JW Property Investors added: “One of the vendors [one of the GPs selling the property] was very sick and we were under pressure to complete the acquisition in a tight timescale otherwise there was a risk the purchase could be delayed for months. Especially if the property had to be sold out of probate. Accordingly, Avamore’s team was able to respond quickly and completed the acquisition funding in double-quick time.”