Specialist lender Avamore Capital has provided £944,000 in refurbishment finance for a project requiring additional capital injection and contractor support, according to a company announcement.
The transaction involved detailed cost assessment and value engineering, with the borrower agreeing to inject additional capital to strengthen the project structure. The lender worked with the borrower to source and appoint an experienced contractor, addressing concerns about the borrower’s limited direct development experience.
Project structure and risk management
Build costs were assessed and managed to ensure the project remained financially viable whilst maintaining a clear path to completion. The lender’s involvement extended beyond standard financing to include contractor sourcing and appointment.
George Poole, relationship manager at Avamore Capital, stated: “By working collaboratively and focusing on the fundamentals, we were able to structure a facility that made the project stack up while ensuring it remained deliverable.”
Spencer King, underwriter at Avamore Capital, commented: “There were complexities around experience and cost control, but through detailed due diligence and a structured approach, we were able to get comfortable with the risk.”
Market context
The transaction reflects ongoing activity in the specialist refurbishment lending sector, where lenders are required to balance risk management with support for borrowers lacking extensive development track records. The deal highlights the due diligence processes and structural adjustments required when financing projects with borrowers who have limited experience in property development.
The £944,000 facility represents the lender’s approach to structured refurbishment projects requiring hands-on management and additional borrower equity contributions to meet underwriting standards.
