"Maintaining momentum and clear communication across all parties ultimately ensured we were able to deliver within the required timeframe"
- Aidan Lesslie - Avamore Capital
Avamore Capital has completed a £3.65m refurbishment facility to fund the conversion of a mixed-use asset into 18 residential flats and 6 commercial units, with existing commercial tenancies retained throughout.
The 15-month facility was structured at 70% LTGDV. Managed by relationship manager Aidan Lesslie and underwritten by Saif Ali Khichi, the transaction was a purchase that completed on its contractual deadline.
Navigating a complex legal structure
The deal involved several layers of complexity, including a multi-lease legal structure and ongoing applications requiring close coordination between all parties. Proactive engagement with solicitors kept the transaction on track through to completion.
The dual-income dynamic, combining the proceeds from the residential conversion with income from retained commercial tenants, called for a carefully structured approach. Balancing short-term stability with long-term upside shaped how the facility was ultimately put together.
"This was a great example of a borrower with a clear vision for repositioning an asset, and our role was to provide the flexibility and certainty to help bring that plan to life," said Lesslie.
"With multiple stakeholders involved and a number of moving parts across the legal structure, it was important that we remained proactive and solutions-focused throughout. Maintaining momentum and clear communication across all parties ultimately ensured we were able to deliver within the required timeframe."
Underwriting a value-add opportunity
From an underwriting perspective, the deal required a detailed grasp of both the asset itself and the wider legal context in which it sat.
"From an underwriting perspective, this deal required a detailed understanding of both the asset and the wider legal landscape," said Khichi.
"The presence of multiple leases and ongoing applications meant we had to take a pragmatic view, balancing risk with the borrower's experience and the strength of the overall business plan. By working closely with the borrower and their advisors, we were able to structure a facility that provided the right level of support while maintaining appropriate safeguards."
The completion reflects Avamore's broader approach to complex, value-add lending, particularly where assets fall outside standard criteria. Taking the time to understand the borrower's strategy and the intricacies of the deal allowed the team to deliver a solution that worked in practice rather than just on paper.
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