Lancashire Development Projects - Consolidated Status Updates
Nov 29, 2017 15:42:10 GMT
jjc, elliotn, and 15 more like this
Post by mrclondon on Nov 29, 2017 15:42:10 GMT
My only exposure to this borrower is a few hundred pounds in each of the four Barnsley flats. As I said yesterday his aim of founding a new residential property developing group ('brand name') is almost certainly noble and well intentioned. Collateral Rep , the borrower (and by implication yourselves) needs to do more to address the scepticism that myself and others feel when looking at the bigger picture. I have funds available to invest, but need (much) more reassurance.
I want to make a series of observations about each of the projects, but this thread is neither the place to respond to them nor to discuss them in any detail. More detailed updates on the loan pages would seem to be the correct place. I'm not a developer or construction industry insider, but nor are many p2p lenders. We do however need more background to understand what is "beneath the hood" to be able to correctly assess the risks on such loans. If I can't assess the risk, I simply don't invest.
DARWEN
COL update 15/11/2017: "Amending planning has been submitted to increase the number of bedrooms in each dwelling [...] the developer has advised that construction work will begin January 2018."
As of two days ago, there was no obvious new planning application as yet on the 'Blackburn with Darwen' planning portal. Can we have the date it was submitted to Blackburn council please, and the planning application number as soon as it is available, please ?
The documentation attached to the new planning application will reveal a lot about the methodology and quality of the borrower's design team. The picking up of somebody else's design is quite a challenge, and given the age and history of most of these projects there will need to be new CAD work to create working drawings for planning changes and then subsequent building control etc.
With just 3.5 working weeks left in 2017, starting construction in January 2018 seems ambitious. Has a construction contract been let ? How is the borrower intending to manage the construction ? Will a monitoring surveyor be retained ? Is the construction contract with a different contractor to Burnley and Great Harwood ?
BURNLEY
COL update 15/11/2017: "The site has been cleared and the developer has advised that construction work will begin January 2018."
Not withstanding the post by Collateral Rep on 23rd August, it would be good to see written documentation from the council that the planning approval of 2012 for the erection of the new dwellings is indeed still current. Regardless, there are no obvious new planning application(s) for the discharge of conditions on the 2012 approval (some of which appear to need discharge before development can commence). Can we have an update from the borrower as to the status of his work to discharge the conditions on the 2012 approval, please (date of submission to the council, response received to date, ref number if known) ?
With just 3.5 working weeks left in 2017, starting construction in January 2018 seems ambitious. Has a construction contract been let ? How is the borrower intending to manage the construction ? Will a monitoring surveyor be retained ? Is the construction contract with a different contractor to Darwen and Great Harwood ?
GREAT HARWOOD
COL Update 15/11/2017: "Internal demolition of the on site buildings has begun and demolition is expected to be completed and site cleared by January 2018. The developer has advised that construction work will begin then."
The Planning application was approved with conditions in July 2016. Most of the conditions (see decision notice attached to application) begin "Following the demolition of W********* Mill, but prior to the carrying out of any further development". However conditions 7 & 14 appear to need discharge before demolition:
There is no obvious new planning application(s) to discharge these conditions, so can we have an update from the borrower as to the status of his work to discharge conditions 7 & 14 on the 2016 approval please (date of submission to the council, response received to date, ref number if known) ?
With just 3.5 working weeks left in 2017, starting construction in January 2018 seems ambitious. Has a construction contract been let ? How is the borrower intending to manage the construction ? Will a monitoring surveyor be retained ? Is the construction contract with a different contractor to Darwen and Burnley ?
BRADFORD
COL Update 15/11/2017: "Expected to drawdown Friday 17th November."
There is still no valuation report attached to the loans, nor is there any confirmation that the declared value is that at which the future buy-back by the developer is set at.
Not withstanding the post by Collateral Rep on 13th October, as of last week, when I last checked, there was no evidence at the Land Registry that any of the student apartments in that building are on their own leasehold titles. I simply don't understand what the security for these loans actually is. Can we please have a full and open disclosure of what the security is, how it will be secured, and what the buyback value from the developer will be ?
BARNSLEY
One of the five loans has redeemed, the other four have just 18 days until the maturity of their six month term. The loans state "The exit to this loan by way of a refinance, in which he has a facility with a major high street bank." There is no update tab on these loans, so can we have an update as to the exit strategy please ?
I want to make a series of observations about each of the projects, but this thread is neither the place to respond to them nor to discuss them in any detail. More detailed updates on the loan pages would seem to be the correct place. I'm not a developer or construction industry insider, but nor are many p2p lenders. We do however need more background to understand what is "beneath the hood" to be able to correctly assess the risks on such loans. If I can't assess the risk, I simply don't invest.
DARWEN
COL update 15/11/2017: "Amending planning has been submitted to increase the number of bedrooms in each dwelling [...] the developer has advised that construction work will begin January 2018."
As of two days ago, there was no obvious new planning application as yet on the 'Blackburn with Darwen' planning portal. Can we have the date it was submitted to Blackburn council please, and the planning application number as soon as it is available, please ?
The documentation attached to the new planning application will reveal a lot about the methodology and quality of the borrower's design team. The picking up of somebody else's design is quite a challenge, and given the age and history of most of these projects there will need to be new CAD work to create working drawings for planning changes and then subsequent building control etc.
With just 3.5 working weeks left in 2017, starting construction in January 2018 seems ambitious. Has a construction contract been let ? How is the borrower intending to manage the construction ? Will a monitoring surveyor be retained ? Is the construction contract with a different contractor to Burnley and Great Harwood ?
BURNLEY
COL update 15/11/2017: "The site has been cleared and the developer has advised that construction work will begin January 2018."
Not withstanding the post by Collateral Rep on 23rd August, it would be good to see written documentation from the council that the planning approval of 2012 for the erection of the new dwellings is indeed still current. Regardless, there are no obvious new planning application(s) for the discharge of conditions on the 2012 approval (some of which appear to need discharge before development can commence). Can we have an update from the borrower as to the status of his work to discharge the conditions on the 2012 approval, please (date of submission to the council, response received to date, ref number if known) ?
With just 3.5 working weeks left in 2017, starting construction in January 2018 seems ambitious. Has a construction contract been let ? How is the borrower intending to manage the construction ? Will a monitoring surveyor be retained ? Is the construction contract with a different contractor to Darwen and Great Harwood ?
GREAT HARWOOD
COL Update 15/11/2017: "Internal demolition of the on site buildings has begun and demolition is expected to be completed and site cleared by January 2018. The developer has advised that construction work will begin then."
The Planning application was approved with conditions in July 2016. Most of the conditions (see decision notice attached to application) begin "Following the demolition of W********* Mill, but prior to the carrying out of any further development". However conditions 7 & 14 appear to need discharge before demolition:
Cond 7: "Prior to the demolition of W********* Mill, details shall be submitted to and approved in writing with the local planning authority in relation to the remaining external wall of W********* mill that will abut the eastern boundary of the site."
Cond 14: "No development shall take place until a Construction Management Statement has been submitted to and approved in writing by the Local Planning Authority. The approved Statement shall be adhered to throughout the construction period. The Statement shall provide for: [...]"
Cond 14: "No development shall take place until a Construction Management Statement has been submitted to and approved in writing by the Local Planning Authority. The approved Statement shall be adhered to throughout the construction period. The Statement shall provide for: [...]"
There is no obvious new planning application(s) to discharge these conditions, so can we have an update from the borrower as to the status of his work to discharge conditions 7 & 14 on the 2016 approval please (date of submission to the council, response received to date, ref number if known) ?
With just 3.5 working weeks left in 2017, starting construction in January 2018 seems ambitious. Has a construction contract been let ? How is the borrower intending to manage the construction ? Will a monitoring surveyor be retained ? Is the construction contract with a different contractor to Darwen and Burnley ?
BRADFORD
COL Update 15/11/2017: "Expected to drawdown Friday 17th November."
There is still no valuation report attached to the loans, nor is there any confirmation that the declared value is that at which the future buy-back by the developer is set at.
Not withstanding the post by Collateral Rep on 13th October, as of last week, when I last checked, there was no evidence at the Land Registry that any of the student apartments in that building are on their own leasehold titles. I simply don't understand what the security for these loans actually is. Can we please have a full and open disclosure of what the security is, how it will be secured, and what the buyback value from the developer will be ?
BARNSLEY
One of the five loans has redeemed, the other four have just 18 days until the maturity of their six month term. The loans state "The exit to this loan by way of a refinance, in which he has a facility with a major high street bank." There is no update tab on these loans, so can we have an update as to the exit strategy please ?
