Avamore Capital has provided an £895,000 development loan for a two-home ground-up construction project in Bromley, marking the borrower’s first development of this type. The 15-month facility was structured at 70% loan-to-GDV.
The lender agreed to fund the majority of professional costs and Community Infrastructure Levy (CIL) payments directly, without requiring formal monitoring surveyor interim reports for those items. This approach was intended to reduce administrative delays during the construction phase.
Planning consent timing
The transaction presented several challenges, notably that the planning permission was due to expire within approximately two months of the loan completion. The borrower, whilst experienced in property, had not previously undertaken a ground-up development project.
Avamore conducted a review and determined the borrower had a plan to commence works and preserve consent within the required timeframe. The lender assessed the developer’s track record and the project’s fundamentals before proceeding.
Adam Klein, director at Atlas Property Finance, which introduced the deal, said: “The team, particularly Aidan, Saif, and Owen worked diligently to ensure a smooth process, taking into account the borrower’s young age while recognising their proven track record of delivering successful schemes and the strength of the professional team supporting the project.”
Lender perspective
Aidan Lesslie, relationship manager at Avamore Capital, stated: “Although this was the borrower’s first ground-up development, we were confident in their ability to deliver the scheme. The project fundamentals were strong, the location was attractive, and the borrower had demonstrated a clear strategy for commencing works before the planning permission expired.”
Saif Ali Khichi, senior credit officer at Avamore Capital, noted that the lender focused on the overall risk profile and execution strategy. The borrower provided evidence of steps being taken to implement the planning permission before its expiry.
The transaction reflects broader trends in development finance, where lenders are increasingly assessing borrowers’ wider capabilities rather than solely previous project types. This approach differs from investment strategies in the buy-to-let sector, where track record remains a primary consideration.
The Bromley project joins a pipeline of small-scale residential developments across London and the South East, as developers navigate planning constraints and evolving government housing policies. The 70% loan-to-GDV structure is typical for ground-up residential schemes in the current lending environment.
