Avamore Capital, the specialist provider of short term finance for property developers and investors, has closed a £1.2m loan facility for Magna Group to enable them to acquire an existing office building in Godalming, Surrey. The property is situated in a very attractive position both in the centre of Godalming, but also backing on to the picturesque River Weygodalming.
The property benefits from permitted development consent for conversion of the building into ten residential apartments and Magna Group intends to make a further permitted development application to add seven more units within the existing building. Magna will also apply for full planning consent to carry out external alterations to enhance the appearance of the building.
Commenting on the scheme, Michael Dean, Principal of Avamore Capital, said: “The project is being undertaken by a strong, professional developer in a very attractive location with the potential for highly desirable river-facing units.”
“This transaction demonstrates there are still very good permitted development conversion projects in high demand locations. This combined with the fact that the finished units are projected to sell at a discount to the wider market represents a low risk project for Magna. From our point of view this project provides us with a compelling lending opportunity and we are delighted to have been able to support a strong developer through this turbulent period.”
“Against a backdrop where many short term lenders are significantly reducing their lending activities, Avamore Capital continues to take advantage of the current situation. Whilst we may be more selective on deals, broadly speaking it remains business as usual.”
For further information, please visit: www.avamorecapital.com