The first loan written by the Avamore Capital platform was redeemed recently.
The loan, a circa £500,000 gross facility for an office to residential conversion, was written in October 2015 to an experienced developer called Joseph Homes. The funding was to enable the borrower to release capital from the property, which had appreciated considerably since acquisition and to carry out the conversion works
The warehouse-style property in Bermondsey SE16, was converted and dressed to an exceptional standard by the end of January and placed on the market to sell in February.
A sale was agreed within a few weeks and completed in late May for over £710,000, netting the borrower an excellent profit.
Avamore’s investors, including a 3rd party family office, earned a 15% IRR on their investment.
Michael Dean, Principal said: “we are delighted to have completed our first redemption, the first of many. It is particularly satisfying that an external investor was able to benefit from our origination capability which is continuing apace. In the month of May we originated over £90m of new enquiries and last week alone, saw £33m of new enquiries, with approximately £10m of deals either in legals or in final negotiation. All our deals under £3m are underwritten by the Principals’ family offices but we are happy to talk to other family offices and sophisticated HNWI about co-lending with us on our pipeline of transactions.”
Avamore will now continue to progress its 2016 target of closing £30m of loans. To make a new lending enquiry, please email email@example.com or fill in the enquiry form on the website.
Avamore Capital is a provider of unregulated loans to corporate entities and private individuals. All loans to private individuals comply with the exemptions set out in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.