fp
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Post by fp on Oct 4, 2017 18:25:07 GMT
Loan value £820,000.00 Asset value £1,320,000.00 LTV 70.00% Rate (pa) 12.00% End date 09/12/2018
About the Borrower The borrower is an experienced developer with over 20 years' experience in a wide range of property developments. He has previously developed student accommodation sites in other cities including Manchester & Sheffield. The borrower is nearing the completion of another student development in Plymouth which has also been funded by MoneyThing lenders. The borrower will redeploy the team straight over to start work on this new project.
Purpose The purpose of this loan is to assist with the acquisition of the site.
Security This loan is secured by a first charge on a student development site in Plymouth.
The property is valued at £1,320,000 giving a loan-to-value ratio of 62%. Further drawdowns of c. £1.5m will be made to fund the construction costs, subject to the LTV remaining at or below 70% against the latest formal valuation.
Updated valuation reports will be included in the 'updates' tab on the website
Please note that the site is being acquired for £730,000. The borrower was able to act quickly to secure a substantial discount from the site's true value.
Loan Structure and Repayment Terms Interest payments: Lenders will receive interest as a monthly payment. The underlying loan agreement with the borrower for the first advance is six-months is interest on account, and then interest will be serviced monthly.
For all other advances, interest will be serviced monthly.
Exit Strategy This loan has a fourteen-month term and will be repaid from the sale of the completed units.
The development is expected to be completed by December 2018. Post drawdown of this facility, the borrower will execute a pre-sales agreement with overseas investors for the full site including the freehold at £3.7m. This will include a long stop date of September 2019 and therefore will not be contingent on September 2018 intake of Students.
Connected loans MTAS707, MTAS713, MTAS722, MTAS746, MTAS772, MTAS779, MTAS781, MTAS792, MTAS812,
Cumulative lending with this loan and current live loans to this borrower is £ 4,613,170
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Post by d_saver on Oct 4, 2017 18:38:01 GMT
MoneyThing - The valuation doc states "In addition, the full building costs are appended at the rear of this report and the intention to purchase/Memorandum of Sale from the buyer on completion in December, 2018. ". These are not available to us? Would be useful, even in redacted form. Thanks.
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oik
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Post by oik on Oct 4, 2017 19:29:41 GMT
Please note that the site is being acquired for £730,000. The borrower was able to act quickly to secure a substantial discount from the site's true value. So yet again, the "true value" apparently isn't what he's paying for it but almost double - presumably what someone would pay him for it for an instant profit without all the kerfufle of actually building something. Who are these foolish souls who sell property for half it's true value and others who will pay double what it could have been acquired for? There seem to be plenty of them around and they need looking after. Development site valuation is a mysterious business.
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fp
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Post by fp on Oct 4, 2017 19:33:47 GMT
Property was for sale for offers in the region of 875k last december.
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r00lish67
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Post by r00lish67 on Oct 4, 2017 19:45:19 GMT
Loan value £820,000.00 Asset value £1,320,000.00 LTV 70.00% Rate (pa) 12.00% End date 09/12/2018 About the BorrowerThe borrower is an experienced developer with over 20 years' experience in a wide range of property developments. He has previously developed student accommodation sites in other cities including Manchester & Sheffield. The borrower is nearing the completion of another student development in Plymouth which has also been funded by MoneyThing lenders. The borrower will redeploy the team straight over to start work on this new project. PurposeThe purpose of this loan is to assist with the acquisition of the site. SecurityThis loan is secured by a first charge on a student development site in Plymouth. The property is valued at £1,320,000 giving a loan-to-value ratio of 62%. Further drawdowns of c. £1.5m will be made to fund the construction costs, subject to the LTV remaining at or below 70% against the latest formal valuation. Updated valuation reports will be included in the 'updates' tab on the website Please note that the site is being acquired for £730,000. The borrower was able to act quickly to secure a substantial discount from the site's true value. Loan Structure and Repayment TermsInterest payments: Lenders will receive interest as a monthly payment. The underlying loan agreement with the borrower for the first advance is six-months is interest on account, and then interest will be serviced monthly. For all other advances, interest will be serviced monthly. Exit StrategyThis loan has a fourteen-month term and will be repaid from the sale of the completed units. The development is expected to be completed by December 2018. Post drawdown of this facility, the borrower will execute a pre-sales agreement with overseas investors for the full site including the freehold at £3.7m. This will include a long stop date of September 2019 and therefore will not be contingent on September 2018 intake of Students. Connected loansMTAS707, MTAS713, MTAS722, MTAS746, MTAS772, MTAS779, MTAS781, MTAS792, MTAS812 Have to confess, when I first saw this post I thought "Wow, useful post, but 42 likes, really?!" Yeah, wine and forum reading are a bad mix.
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fp
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Post by fp on Oct 4, 2017 19:54:06 GMT
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Post by badboyyardy on Oct 4, 2017 20:29:51 GMT
So its safe to assume the 1st Development loans are as good as covered and will be repaid and are totally separate to these?
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fp
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Post by fp on Oct 4, 2017 20:32:00 GMT
So its safe to assume the 1st Development loans are as good as covered and will be repaid and are totally separate to these? Its a separate development
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registerme
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Post by registerme on Oct 4, 2017 20:35:18 GMT
Have to confess, when I first saw this post I thought "Wow, useful post, but 42 likes, really?!" Yeah, wine and forum reading are a bad mix. Thank you, that got a good laugh out of me .
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ben
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Post by ben on Oct 4, 2017 20:43:39 GMT
So its safe to assume the 1st Development loans are as good as covered and will be repaid and are totally separate to these? I Would not assume the 1st part, though indicators are looking good that it will repay but it has already over run and the borrower has issues with minor details like if the roof is complete or not. Probably will repay but certain. It is a completely separate site. I have no idea what the demand for student accommodation is in Plymouth so have to hope that the current development has not filled the need but is probably unlikely to have done.
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copacetic
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Post by copacetic on Oct 4, 2017 21:00:47 GMT
Please note that the site is being acquired for £730,000. The borrower was able to act quickly to secure a substantial discount from the site's true value. So yet again, the "true value" apparently isn't what he's paying for it but almost double - presumably what someone would pay him for it for an instant profit without all the kerfufle of actually building something. Who are these foolish souls who sell property for half it's true value and others who will pay double what it could have been acquired for? There seem to be plenty of them around and they need looking after. Development site valuation is a mysterious business. If the valuer's numbers are all correct then the borrower could make an instant profit of £590k but if he builds it out and sells at the predicted £3.7m he can make £1.47m profit so at least he has a reason to develop it. That said, I'm always dubious about loans that have a LTPV >100% as the borrower can walk away laughing in the morning quids in. At least if they have some of their own money in equity which is ranked behind ours it means they have some faith in the project.
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nick
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Post by nick on Oct 4, 2017 23:05:22 GMT
I keep thinking that market price is the price that a willing buyer pays to acquire something from a willing seller. Silly me, its actually the price an imaginary economically illiterate buyer is willing to pay a willing seller...........
Joking aside, such massive variations between 'valuation' and actual transaction price destroys confidence in the reliability of the former. I make the LTV 112% as in the event of a default on day one I would really struggle to see how the sale via a receiver would recoup more than the current price price. I usually apply a 25% haircut to any 90 day valuation as an estimate of realisable security value - its seems I should probably be doubling the haircut to get to a realistic number!
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seeingred
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Post by seeingred on Oct 5, 2017 8:17:08 GMT
So its safe to assume the 1st Development loans are as good as covered and will be repaid and are totally separate to these? I have no idea what the demand for student accommodation is in Plymouth so have to hope that the current development has not filled the need but is probably unlikely to have done. When the last Plymouth student loan project was launched there was an observation to the effect that Plymouth was already saturated with student lets Huge choice available and some of a type that students didn't want. Await to see how credible is the offer to buy all these off plan, and look at the design? www.plymouthherald.co.uk/news/plymouth-news/2000-student-flats-could-stand-358824
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fp
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Post by fp on Oct 5, 2017 8:27:39 GMT
I have no idea what the demand for student accommodation is in Plymouth so have to hope that the current development has not filled the need but is probably unlikely to have done. When the last Plymouth student loan project was launched there was an observation to the effect that Plymouth was already saturated with student lets Huge choice available and some of a type that students didn't want. Await to see how credible is the offer to buy all these off plan, and look at the design? www.plymouthherald.co.uk/news/plymouth-news/2000-student-flats-could-stand-358824Planners noted that it was important to free up housing currently used for student accommodation so it could be made available for families when planning was granted for this development and the previous one currently live on the platform.
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seeingred
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Post by seeingred on Oct 5, 2017 8:39:02 GMT
The point of the newspaper article seemed to be that some designs of student developments were not liked by students.
They decide where they will live, not the planners. Purchasers of these 'investment properties' may take note also.
I believe the large student flats loan currently on COL is of a 'favoured' design.
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