Oaknorth in Scottish loan first

Lender Oaknorth is pumping £3 million into property developer AMA Homes – marking its first transaction in Scotland.

The investment loan will provide Edinburgh-based AMA with an extended period to redevelop Belford House and Douglas House in the capital into a new residential site with 50 apartments and 2,000 square feet of commercial space.

Belford House is a sevenstorey office building which is currently owned by AMA. Douglas House extends over five floors with AMA owning the ground and first floors. The two buildings are adjacent to one another and interconnected through the first floor.

Ali Afshar, joint managing director of AMA Homes, which was established in 1983, said: “Last year saw a 17 per cent increase in new prospective buyers registering in the second quarter and a 3 per cent increase in viewings yearon-year.

“However, this rising demandhasnotbeenmatched by an uptake in supply, which has resulted in heightened competition for best in class properties and some selling for above their home report valuations.”

In a joint statement, Ben Barbanel, head of debt finance, and Damien Hughes, property finance director at Oaknorth, said: “This is a very exciting transaction for us – it is our first to a Scottish business and we’re delighted to be working with such a well-established and experienced management team. “AMA Homes have an incredibly strong property portfolio and are behind several of the country’s awardwinning developments, including Evolution West Port and Springside in Fountainbridge.”