Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

First-Time Developer Secures £2.18m for Nine-Flat Residential Scheme

Avamore Capital has provided a £2.18 million ground-up development facility for a nine-flat residential scheme. The borrower, who has no previous construction or development experience, secured the funding through broker Arose Finance.

The transaction faced several challenges, including the site's location next to a railway line, which required compliance with a Basic Asset Protection Agreement (BAPA). The scheme also features an unconventional unit mix, including several five-bedroom apartments.

Specialist lenders such as Avamore Capital are providing finance to inexperienced developers, a practice that has drawn scrutiny in the wider development finance market. Traditional lenders typically require a proven track record before extending credit for ground-up construction projects.

The deal was described as complex, requiring diligence, collaboration, and resilience from all stakeholders. Avamore Capital focused on the overall strength of the opportunity and worked collaboratively with all parties to structure a solution, despite the borrower's lack of development experience and the scheme's unusual unit mix.

This transaction highlights the continued appetite among specialist lenders to finance residential development projects that fall outside conventional lending criteria. Such deals typically involve higher interest rates and fees to compensate for increased risk.

For UK letting agents and inventory clerks, the development of nine new flats, including several larger units, may present future opportunities for lettings and property management once construction is complete.