Avamore Capital has completed a £3.65m refurbishment facility to support the transformation of a mixed-use asset into 18 residential flats and six commercial units.
The 15-month facility, which was structured at 70% LTGDV, will enable the borrower to enhance and reposition the asset, unlocking additional value through its residential conversion while maintaining income from existing tenants.
This dual-income dynamic required a carefully structured approach to ensure both short-term stability and long-term upside were effectively balanced.
Aidan Lesslie (pictured), relationship manager at Avamore Capital, said: “This was a great example of a borrower with a clear vision for repositioning an asset, and our role was to provide the flexibility and certainty to help bring that plan to life. With multiple stakeholders involved and a number of moving parts across the legal structure, it was important that we remained proactive and solutions-focused throughout. Maintaining momentum and clear communication across all parties ultimately ensured we were able to deliver within the required timeframe.”
Saif Ali Khichi, underwriter at Avamore Capital, added: “From an underwriting perspective, this deal required a detailed understanding of both the asset and the wider legal landscape. The presence of multiple leases and ongoing applications meant we had to take a pragmatic view, balancing risk with the borrower’s experience and the strength of the overall business plan. By working closely with the borrower and their advisors, we were able to structure a facility that provided the right level of support while maintaining appropriate safeguards.”
