Avamore Capital has successfully completed a £4.5m funding facility to support a multi-faceted property and corporate transaction in Clifton, Bristol.
The borrower, an experienced local property investor, required maximum funding to facilitate a corporate acquisition and refurbishment programme across three prime residential properties.
The transaction presented several significant challenges, including a valuation adjustment that reduced the gross development value. This resulted in an increased loan-to-GDV ratio of 75%, up from approximately 60% at the heads of terms stage. Despite this shift, the scheme maintained a projected profit on cost of 15%, reflecting the strong fundamentals of the local market and the borrower’s expertise.
The inclusion of a share purchase added an additional layer of complexity, secured against three properties combined into a single facility and requiring careful structuring and legal coordination to ensure compliance and operational efficiency.
Recognising the borrower’s strong local track record, Avamore Capital accepted higher leverage due to the credible exit strategy and alignment with risk appetite. The lender completed full underwriting and achieved drawdown within the desired timeframe.
George Ormerod, relationship manager at Avamore Capital, said: “This was a complex transaction combining both a corporate acquisition and refurbishment funding. With a fast-approaching deadline to complete, I am delighted that we were able to quickly structure a solution that met the client’s objectives. It’s a great example of how we can be flexible in underwriting, helping to support developers and investors with such bespoke loans. Thanks to the broker for the business and to the whole team at Avamore for getting this deal across the line.”
