jonah
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Post by jonah on Oct 13, 2017 9:26:01 GMT
1 to 12) Student Apartment Property Loan Interest P/A - 12% Loan value of £41,965 (value £59,950) LTV 70% Loan Term - 3 months Bid Limit - none Collateral Rep can you confirm.... the developer is purchasing all 140 flats back, but just wants some cash from 12 of them before offloading all to another third party? The wording is slightly ambiguous.
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Post by Collateral Rep on Oct 13, 2017 9:39:01 GMT
Hi jonah, Yes the borrower is buying all flats back. Many thanks, Gordon
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moist
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Post by moist on Oct 13, 2017 9:42:02 GMT
seem light on detail? What is he paying per flat...any valuation? Same borrower as bolton?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Oct 13, 2017 9:47:36 GMT
seem light on detail? What is he paying per flat...any valuation? Same borrower as bolton? Nope, possibly a more serial P2P borrower in this sector, this was one of his first projects
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oldgrumpy
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Post by oldgrumpy on Oct 13, 2017 10:21:00 GMT
Collateral Rep Small loans which default can cost much of the value to recover in fees, whereas a single large loan proportionately should cost far less. If this borrower is (for instance) going to take out 140 separate small loans, in the event of default on one or two loans, will COL be defaulting and calling in the whole set, or just the individual failures? We wouldn't want to see (in dire circumstances ) dozens of individual sets of administrators . Is COL anticipating floating all 140 of these loans in due course? 140 x c£42K = nearly £6M (Gulp!)
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Post by Collateral Rep on Oct 13, 2017 10:43:01 GMT
Hi oldgrumpy, The borrower has agreed a sale on all the units. We are only funding the 12 loans on the platform. When the sale goes through, we have an undertaking from the borrowers solicitor that they release the funds to us to repay each loan. Many thanks, Gordon
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stevio
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Post by stevio on Oct 13, 2017 10:53:19 GMT
Hi oldgrumpy , The borrower has agreed a sale on all the units. We are only funding the 12 loans on the platform. When the sale goes through, we have an undertaking from the borrowers solicitor that they release the funds to us to repay each loan. Many thanks, Gordon I think what was meant was - will you default all 12 loans if only 1 defaults? - will there be individual administrator costs for each loan in default or would there be one administrator cost for defaulting all 12 loans?
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oldgrumpy
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Post by oldgrumpy on Oct 13, 2017 11:41:07 GMT
Yes, I noticed that question had not been answered.
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seeingred
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Post by seeingred on Oct 13, 2017 12:09:05 GMT
So this is in effect a short term bridging loan for the proceeds of 12 individual flats, to free up 500k for a short time only until a larger global transaction for 140 flats completes.
In that case why not offer all 12 as a single bridging package with one guarantee and one set of receivers, if it came to that?
No reason why each should not be repaid as and when it sells in the global deal to reduce the remaining loan value?
Something similar was done on COL with a series of flats in Oa***** V*** in Barnsley - a series of small loans for flats in same blocks.
Never invested heavily in them for that reason, and they were 'proper' flats not student pods??
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elliotn
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Post by elliotn on Oct 13, 2017 12:23:03 GMT
Coll like to spilt loans partly in response to investor perception of greater liquidity per loan as with the splits of the dev tranches.
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seeingred
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Post by seeingred on Oct 13, 2017 12:24:47 GMT
Coll like to spilt loans partly in response to investor perception of greater liquidity per loan as with the splits of the dev tranches. That is all very well when there is one underlying loan. Not sure that applies here - individual contracts??
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elliotn
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Post by elliotn on Oct 13, 2017 12:33:57 GMT
Coll like to spilt loans partly in response to investor perception of greater liquidity per loan as with the splits of the dev tranches. That is all very well when there is one underlying loan. Not sure that applies here - individual contracts?? Might be worth checking Huddersfield, Mews, Barnsley etc which were similarly split & same questions asked.
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Post by Collateral Rep on Oct 13, 2017 13:14:01 GMT
Afternoon,
These loans are all separate and each unit has a separate title.
Many thanks,
Gordon
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Post by Badly Drawn Stickman on Oct 13, 2017 13:31:14 GMT
Afternoon, These loans are all separate and each unit has a separate title. Many thanks, Gordon Hi Gordon Could you just explain the exit strategy on this. It looks like we are financing the repurchase of the flats, would that not create a position were a sale would be needed to generate repayment funds? Do we have a figure for how many flats have been repurchased so far? I am working on the assumption that the whole 140 flats are to be sold in entirety as the end game.
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Post by Collateral Rep on Oct 13, 2017 13:38:28 GMT
Hi Badly Drawn Stickman, The borrower previously sold all the units after developing the site, but is exercising their right to buy the units back and is in the process of completing this, they have a fund that is contracted to buy them at an uplift in price. So the fund/sale has already been agreed, which is the exit. Our borrower is looking to release some capital from their investments prior to the fund completing on the whole development. Many thanks, Gordon
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