Avamore reaches £150m of loan redemptions

Avamore Capital has reached £150m of total loan redemptions.

The lender has suffered no losses from these repayments, which it noted as a particularly important milestone considering fluctuations in the market resulting from both Brexit uncertainty and multiple UK lockdowns.

The redemption which saw Avamore cross the £150m mark was also its largest refurbishment deal to date, a £7.9m office to residential conversion project in Camberley.

Earlier this year, Avamore announced that it had reached £250m of total lending.

Of the loans which have been redeemed, Avamore has closed £13m worth of deals with the same borrower, split between redeemed and live loans, with further transactions in the pipeline.

Avamore’s asset management team has recently adopted Shieldpay, an online payment platform which provides greater transparency and flexibility, providing oversight on the movement of funds.

Amit Majithia, principal at Avamore, said: “Achieving £150m of redemptions is a hugely important milestone to be acknowledging.

"The fact that we have done this without any impairments to capital or interest is testament to both the considered approach our credit analysts and underwriters take to transactions and to the hard work of our asset management department who have successfully supported our borrowers, in what has naturally been a challenging year for them.

"It is always a thrill to know that being repaid on a loan is not only a redemption statistic for us, but it means that another one of our borrowers has successfully completed a scheme, and has delivered more residential units to the market, and is hopefully preparing to start the process all over again with a new development.

"We have ambitious plans to continue growing our loan book over the course of the next 3 years, but will always strive to ensure that this is done prudently as this is a true reflection of the strength of our business.”