Avamore Capital the specialist bridging and development lender has provided a circa £600k facility to a subsidiary of Reading-based Resi Solutions Ltd (“Resi”). The funding has enabled Resi to buy an office building in Earley, near Reading. Avamore will provide regular advances to Resi for the conversion of a 1980s office building into 6 flats with a GDV in excess of £1m. The flats are anticipated to have been completed and sold within 12 months and demand for them is expected to be high as they are targeted at first-time buyers and smaller investors. It Avamore’s the third loan to the Resi group in as many months.
Zuhair Mirza, Principal of Avamore Capital said: “We’re delighted to have funded this acquisition for Resi Solutions and look forward to supporting them with the build over the coming months. Over the last 10 weeks we have closed 3 deals with them and are about to put another into legals shortly.”
Additionally, Avamore have rebridged a development site on the exclusive St George’s Road in Twickenham for an experienced developer. The £700k facility, which represents an initial LTV of 77% will enable the developer to comprehensively refurbish and extend the property, which will have an anticipated GDV of £2m when completed in 12 months’ time. Sale as a family home is predicted on practical completion.
Michael Dean, Principal of Avamore said: “I have known this borrower personally for a number of years and I am grateful to Matthew at Arc for putting me back in touch with him. The day 1 leverage would have been a struggle for most lenders but we found a way of structuring a deal that worked for the borrower and also enabled us to have an appropriate level of risk once the refurbishment works are done. We would urge any customers or brokers needing to stretch their day 1 leverage that bit further to get in touch with us since this is becoming a speciality of ours.”
Mr Dean added further: “We have some very interesting situations in the pipeline which we are really excited about. We believe these discussions could result in us exceeding our initial £50m target for this year substantially.”
David Powell and Julian Sampson at TWM Solicitors, Guildford represented Avamore Capital in both transactions.
Resi Solutions was represented by Emma Elkington of Phillips Solicitors.
The Twickenham borrower was represented by Danny Schwartz of Lawrence Stephens Solicitors.
Matthew Cleave of Arc & Co introduced the Twickenham borrower.
Avamore Capital is a special situations lender that provides loans to property traders, property developers, property investors, and other property entrepreneurs. Loan sizes are between £0.5m and £5m with larger loans possible in conjunction with its partners. Avamore Capital provides a flexible approach, quick feedback and very fast drawdown, subject to due diligence.