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Post by supernumerary on Sept 6, 2018 9:38:21 GMT
C&P from Upcoming loans thread; Good afternoon We are pleased to be bringing a new 'Borrower' to the platform and will launch this self-select loan on Thursday morning. The company operates in the healthcare sector and the loan is part of a finance package for the acquisition of the freehold property. Thursday 6th September 2018 Loan Launch Details: Borrower Sector: Healthcare Amount: £600,000 Term: 48 months (12 months min term) Rate: 13% - Amortising Security: 2nd Ranking Legal Charge over Property, Personal Guarantee from Principal Instant Returns: Enabled Loan Launch: 10am - 6th September 2018 Loan Live: 2pm - 6th September 2018 Initial Bid Limit: £3,000 Bid Limits Removed: 10am - 7th September 2018 During office hours bank transfers will be credited to your account, however please do consider using the ‘Debit Card’ feature, which is credited to your account immediately at any time. Should you experience any difficulties in making a pledge, do call us on +44 (0) 1491 410 400 or email customerservices@ablrate.com Kind regards,
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Post by supernumerary on Sept 6, 2018 9:43:44 GMT
This first thing that caught my eye was; "Reditum Capital is providing £1.2m of funding in respect of the acquisition and will be granted a first ranking legal charge." Who are these people I wondered? Posting just out of curiosity, their website is here; www.reditumcapital.com/about-us/
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Post by lendinglawyer on Sept 6, 2018 9:47:49 GMT
This first thing that caught my eye was; "Reditum Capital is providing £1.2m of funding in respect of the acquisition and will be granted a first ranking legal charge." Who are these people I wondered? Posting just out of curiosity, their website is here; www.reditumcapital.com/about-us/Reditum worked with PropertyCrowd on their early offerings which all redeemed in full without problem. However, the difference is that on PC you invested pari passu with them whereas here you are subordinated to them. Perhaps that's why they haven't worked with PC after an early run of deals? I.e. they got greedy and wanted someone who would take a second charge rather than an extra slice of the first charge...?
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Post by supernumerary on Sept 6, 2018 9:57:50 GMT
Reditum worked with PropertyCrowd on their early offerings which all redeemed in full without problem. However, the difference is that on PC you invested pari passu with them whereas here you are subordinated to them. Perhaps that's why they haven't worked with PC after an early run of deals? I.e. they got greedy and wanted someone who would take a second charge rather than an extra slice of the first charge...? Thanks for the additional information. So Ablrate have a second charge amortising loan. I wonder if Reditum have an amortising loan as well? Or is it 'interest only' for 'Reditum Capital'?
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baldpate
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Post by baldpate on Sept 6, 2018 10:01:45 GMT
ablrate - please could you please confirm that this loan is FULLY amortizing over 4 years (i.e zero capital balance at the end of term)
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Post by choupica on Sept 6, 2018 10:06:12 GMT
@ supernumerary: first charge is 12mth interest only. option to extend by 12mth. page 13 & 15
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markyg61
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Post by markyg61 on Sept 6, 2018 10:09:31 GMT
Page 13 of the Borrowing proposal, under "Second Charge Security" states: Reditum Capital is providing an interst only loan of £1.2m for a period of 12 months, with the option for this to be extended by a further 12 months
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Post by supernumerary on Sept 6, 2018 10:15:19 GMT
ANOTHER question(s) come to mind.
The Health Group that Ablrate investors are lending to, for the acquisition of this freehold property, already have two Purpose-built care homes at two separate locations.
Do that Health Group fully own those two Purpose-built properties and if so, do they have any borrowings on them? The purpose of the question, would be to ascertain whether their cash flow is FULLY committed to repaying the 1000107 - Acquisition of Freehold Property loan.
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blender
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Post by blender on Sept 6, 2018 10:20:48 GMT
I am not sure that we should be identifying the other lender, outside of DD central.
As for the loan. We are not told the cost of the acquisition which we are helping to finance. The security valuation against which the LTV is made assumes that the business is a going concern. The 'bricks and mortar' valuation is £1.5M. I'm feeling Boboish - though the security is better than Rainmaker, imo. Seems like it's tough if you're looking for high rates and copper-bottomed security.
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sapphire
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Post by sapphire on Sept 6, 2018 10:22:55 GMT
ablrate - It would be helpful if you could please us know the net worth of the personal guarantor. Some of the previous loans have included this info in the borrowing proposal, but I can't seem to find it in this one.
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blender
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Post by blender on Sept 6, 2018 10:26:19 GMT
ANOTHER question(s) come to mind.
The Health Group that Ablrate investors are lending to, for the acquisition of this freehold property, already have two Purpose-built care homes at two separate locations.
Do that Health Group fully own those two Purpose-built properties and if so, do they have any borrowings on them? The purpose of the question, would be to ascertain whether their cash flow is FULLY committed to repaying the 1000107 - Acquisition of Freehold Property loan. I thought they were leasing two properties and that this loan, together with the first charge loan, was to purchase the freehold of one of them. The other they may purchase in the future. As to how the cash is spent - I would like to know if they are paying £1.8M for the freehold, or whether some of it is for working capital and/or the acquisitions they have in mind.
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Post by supernumerary on Sept 6, 2018 10:27:17 GMT
I am not sure that we should be identifying the other lender, outside of DD central. I was NOT sure either, BUT the LOAN hasn't been identified, so I will await a moderator decision on that...
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sapphire
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Post by sapphire on Sept 6, 2018 10:33:29 GMT
With a first charge of £1.2m i.e. 80% of the a bricks and mortar valuation of £1.5m, this ablrate loan of £600K is effectively underpinned by a second charge 80-120% LTV based on this (bricks and mortar) valuation.
A 13% return seems quite low for this huge level of risk if the business were to fail.
Am I missing something?
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Post by supernumerary on Sept 6, 2018 10:33:46 GMT
I thought they were leasing two properties and that this loan, together with the first charge loan, was to purchase the freehold of one of them. The other they may purchase in the future. As to how the cash is spent - I would like to know if they are paying £1.8M for the freehold, or whether some of it is for working capital and/or the acquisitions they have in mind. Thanks, MY mistake. Good question(s).
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Post by choupica on Sept 6, 2018 10:35:26 GMT
in the docs we can find that the freehold was bought at 2.8mln in 2008 from some people in denmark.
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