sapphire
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Post by sapphire on Aug 28, 2018 18:56:20 GMT
The “Full Loan request” document notes: “The Subject Property was then put up for sale at auction earlier this year, with a reserve price of £1.9m. It field (sic) to sell, and the auctioneer advises that the highest bid was £1.88m.”
As such, the current valuation of £1.35m does seem quite conservative in light of the above auction bid. (Having regard to some other VRs on some other platforms which are clearly overvalued, this is a pleasant surprise).
Just wondering if there has been a substantial decline in South London commercial property values since 'earlier this year'? (There does not appear to be any mention of the aforementioned auction in the VR. The most recent 'Comparable Evidence' noted in the VR is dated Sep 17 for "Lettings Evidence" and Mar 18 for "Sales Evidence".)
Or is the valuer just being very conservative?
Am I missing something?
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Greenwood2
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Post by Greenwood2 on Aug 28, 2018 19:37:53 GMT
Why didn't they take the £1.88M?
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sapphire
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Post by sapphire on Aug 28, 2018 20:08:05 GMT
Why didn't they take the £1.88M? Indeed. This is around 1.1% lower than the £1.9M reserve price so would expect a deal to have been done after the auction. Unless the bidder(s) got carried away / were 'sleeping' and 'woke up' after the auction ended!  Anyway, a reserve price of £1.9M suggests that the sellers expected this to be a reasonable price at that time. Wonder what they feel about the current valuation of £1.35m.
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Post by p2ples on Aug 28, 2018 20:20:28 GMT
The “Full Loan request” document notes: “The Subject Property was then put up for sale at auction earlier this year, with a reserve price of £1.9m. It field (sic) to sell, and the auctioneer advises that the highest bid was £1.88m.” As such, the current valuation of £1.35m does seem quite conservative in light of the above auction bid. (Having regard to some other VRs on some other platforms which are clearly overvalued, this is a pleasant surprise). Just wondering if there has been a substantial decline in South London commercial property values since 'earlier this year'? (There does not appear to be any mention of the aforementioned auction in the VR. The most recent 'Comparable Evidence' noted in the VR is dated Sep 17 for "Lettings Evidence" and Mar 18 for "Sales Evidence".) Or is the valuer just being very conservative? Am I missing something? I think that when this property went to auction in May, there was an 'indicative scheme' for redevelopment' of 20-odd flats 'subject to obtaining all relevant consents' so maybe that's why the guide price was higher than the current valuation.
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Nomad
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Post by Nomad on Aug 28, 2018 20:47:41 GMT
Why didn't they take the £1.88M? Maybe there was phoney bidding to just below the reserve figure?
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Post by markaldrich on Aug 29, 2018 6:02:19 GMT
Unusually for me with Proplend I am more cautious on this one. A quick check of Lambeth planning policy suggests a pro pub approach. Anyone else concerned or am I being too cautious?
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sapphire
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Post by sapphire on Aug 29, 2018 6:54:43 GMT
Unusually for me with Proplend I am more cautious on this one. A quick check of Lambeth planning policy suggests a pro pub approach. Anyone else concerned or am I being too cautious? The VR notes: "We therefore anticipate that if the property was sold with granted planning consent, as a development, it is not atypical for the property of this nature, to sell at premium price." I think this suggests that the valuation provided does not include a 'hope value' added for future planning consent? (If it did include, I would expect this fact to be explicitly highlighted) So, even if the planning consent is denied, presumably the current valuation is still appropriate?
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Post by markaldrich on Aug 29, 2018 7:00:25 GMT
No that’s for sure that it will have been valued without PP. However if it doesn’t get change of use I just can’t see people interested in a pub nowadays. Certainly the one in our village stands empty. Does anyone know the area and have a view?
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hantsowl
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Post by hantsowl on Aug 29, 2018 8:45:00 GMT
Google map the postcode and you can see it is a stones throw from the Oval cricket ground.
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Post by markaldrich on Aug 29, 2018 8:49:00 GMT
Why did it close as a pub? Was it failing?
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sapphire
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Post by sapphire on Aug 29, 2018 9:50:45 GMT
Tripadvisor has some mixed reviews before it closed...Overall rating is 4/5 across 42 reviews...Last review there is dated Jul 2015....The last two give a positive feedback but the couple before that don't ... one notes 'newish owners'.
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Post by markaldrich on Aug 29, 2018 10:31:46 GMT
Looks like it was bought back by the brewery so that’s encouraging ie the tenant didn’t walk or fold
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rs
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Post by rs on Aug 29, 2018 12:20:52 GMT
I got tranche B and some of tranche A on this loan. Surprised it hasn't filled yet.
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