Avamore Capital, the specialist bridging and development lender, has provided a £1.8m acquisition and refurbishment bridge to a client of Pioneer Finance. Avamore assisted the borrower (an experienced contractor) during the contractual notice period and managed the vendor to save the customer from losing a £100,000 deposit. The loan was completed from start to finish in circa 10 days and Avamore was able to rely on a previous lender’s valuation report.
The property, a townhouse in Chiswick, London W4, benefits from planning permission to be converted into 5 flats. GDV is likely to be in the region of £3.4m with an average unit price of approximately £700,000. The transaction took place by way of a corporate transfer, with the shares in the company owned by a Malaysian company which added a degree of complexity which Avamore was able to work through.
Neil Harris of Pioneer Finance said: “Avamore has really rescued my client, the team worked hard to get the deal over the line and moved mountains to save the client, who is very grateful. Avamore delivered yet again.” Harris added: “This is the third deal we have closed together in a little over a month with another three due to be completed shortly.”
Amit Majithia, Principal at Avamore noted: “Despite the deal being more complex than some of the others we have looked at this year, with the added pressure of the borrower running to the end of their contractual notice period, we were able to work together with Neil and the customer to get the deal closed. We take pride in delivering for our brokers and customers and we are pleased to get the job done yet again. Neil is one of our top brokers and it is particularly satisfying to deliver the goods for him.”
Michael Dean, Principal and co-founder of Avamore Capital added: “2017 is proving a very challenging environment to do business in our space. Rates are under pressure as deal volumes in the bridging market fall – the competition is fierce. Notwithstanding that, we are seeing our enquiries increase month on month and we are able to close these enquiries with increasing regularity. I am really confident we will beat our upwardly revised targets for H2 2017 based on current progress.”
– Phil Berry and Chris Nelson of Teacher Stern acted for Avamore Capital
– Lorna Hegarty at DWS acted for the borrower
– Neil Harris of Pioneer Finance introduced the business
– Cluttons provided the RICS red book valuation for Avamore Capital”