The facility was provided at 61.4% LTV, when the snagging works are complete, at a rate of 0.59% pcm for a duration of six months.
The client will use the funding to repay an existing lender and to release working capital to the developer and its shareholders.
Some of the funds will also go towards outstanding snagging works and final s106 payments to the local authority.
The property is a 99% completed residential development of 101 apartments, of which 58 have already been sold.
“It’s the largest we’ve done on record and it’s the cheapest interest rate we’ve ever done,” said Michael Dean, principal at Avamore (pictured above).
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Speaking about the challenges Avamore faced during the deal, Michael added: “This was a development where the original developer went bust in the last crash/cycle and left a part-built development site, which our client subsequently acquired and added value to by obtaining planning for additional units.
“A site with that kind of history which isn’t fully practically complete always requires a lot of construction and property due diligence and consequently the odd view to be taken so we had to be commercial to get the deal done quickly.”
Michael said that he believed that Avamore had proven that it could be highly competitive in the large bridging loan space and would be interested in doing more of these deals.
“I’d encourage any brokers or developers to give us a call to discuss.
“This deal came about through a longstanding relationship with a client that we’ve known individually for nearly four years, who enquired on the off chance whether we could help.
“We really pushed the boat out to be competitive and now we know we can compete effectively in this space on rate we look forward to delivering more of our brand of great service and relationship-driven lending.”