en.Wedoany.com Reported - UK's Avamore Capital has provided £3.3 million in development financing for a six-unit residential project that includes significant urban infrastructure works. This marks the first transaction between the lender and a newly formed borrower partnership.
The facility has an 18-month term and a loan-to-gross-development-value ratio of 68%, and will be used to construct six detached homes, alongside off-site urban infrastructure improvements including carriageway widening and new footpath construction. The urban infrastructure works must be 90% complete before vertical construction can commence. The loan represents the first collaborative project for three construction professionals, one of whom has an existing relationship with Avamore, and the lender assessed the deal based on individual experience rather than the partnership's track record.
Aidan Lesslie, Relationship Manager at Avamore Capital, said: "This was a highly interesting transaction, and while it was their first collaboration, the strength of the individuals involved stood out. Having previously lent to one of the borrowers gave us additional comfort, allowing us to take a pragmatic view of the overall partnership." The urban infrastructure component of the project added complexity to the financing structure, with Avamore's underwriting process focusing on technical acceptance from the local highway authority and the sequencing of infrastructure works relative to residential construction.
Underwriter Saif Ali Khichi stated: "The structure required a detailed understanding of the planning position and the timeline for the infrastructure works. Given the authority's technical approval and a clear delivery path, we were comfortable with the sequencing risk." Joshua Rowe, Transaction & Structuring Analyst at Avamore, coordinated the deal execution between the borrowers and the internal team.
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