Avamore Capital has completed a £3.1m refinance facility with an experienced developer to support a £4.4m GDV residential development project in Shoeburyness.
The development comprises a small-scale scheme of family housing with full planning consent and the Avamore facility supports both site acquisition and build costs.
The client had previously delivered a similar scheme of terraced houses nearby, which was completed to a high standard and successfully sold at comparable price points to those forecasted for this development.
The client faced a refinancing challenge after securing short-term debt against the site following planning approval. With that facility approaching expiry, the borrower needed to refinance within a fixed timeframe to avoid significant penalty charges and potential delays to the project programme.
Avamore Capital worked closely with the borrower to structure a refinance solution that could be delivered quickly and efficiently. By taking additional security across the wider group, Avamore was able to refinance existing debt and provide certainty at a critical stage of the project, while adopting a streamlined legal approach to maintain momentum.
Adam Butler (pictured), director of sales and marketing at Avamore Capital, said: “In today’s development finance market, the ability to move decisively and take a commercial view is more important than ever. Experienced developers don’t always fit neatly into rigid lending frameworks, particularly when timing is critical. Our role is to understand the fundamentals of a scheme and the capability behind it, and then structure funding that allows projects to move forward rather than stall.”
Spencer King, underwriter at Avamore Capital, added: “This was a strong scheme backed by a developer with clear and relevant experience. The key challenge was the timeframe and by focusing on the fundamentals of the deal and taking a pragmatic view on structure and security, we were able to deliver a solution that worked for the client.”
