Avamore Capital has completed a £5m refinance and remediation facility with an experienced property investor and developer on a 157-bed purpose-built student accommodation (PBSA) scheme.
The borrower acquired the asset in 2024 and at purchase the property held a B2 external wall rating, which required significant remediation to meet current fire safety standards.
Avamore adopted a flexible and commercially minded approach to unlock the deal, facilitating a restructuring arrangement that allowed the existing lender to defer part of the outstanding debt, subject to an agreed DOP.
With the transaction already time-sensitive due to a previous lender withdrawing during the legal process, Avamore expedited underwriting and agreed to take a retype of the existing valuation to keep the deal on track.
Avamore’s loan refinanced the existing debt and provided full funding for the works, which totalled £1,613,575.
The scheme carries an expected GDV of £9.3m on completion, and the borrower has appointed an expert professional team and a specialist contractor to deliver the remediation.
Ed Blundell, head of underwriting at Avamore Capital, said: “This deal required a genuinely collaborative approach and a willingness to engage with a specialist remediation strategy that fell outside the scope of a typical development loan. Our priority was to structure a facility that provided certainty, flexibility, and enough time for the borrower to navigate regulatory approvals without unnecessary pressure. It’s a strong example of how Avamore can support experienced developers through complex, time-sensitive situations while still maintaining a robust credit position.”
