The facility enabled an experienced developer to refinance against a tight deadline and progress the scheme into construction.

The development comprises a small-scale scheme of family housing with full planning consent with the facility supporting both site acquisition and build costs, against an anticipated gross development value of approximately £4.4m.

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.

The borrower had previously delivered a similar scheme of terraced houses nearby, which was sold at comparable price points to those forecasted for Shoeburyness development.

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The refinance completed within a matter of weeks, enabling the borrower to exit the expiring facility in full and move forward with construction.

Commenting on the transaction, Spencer King, underwriter at Avamore Capital, said: “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.”

Adam Butler, director of sales and marketing at Avamore Capital (pictured above), added: “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.”