criston
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Post by criston on Oct 10, 2019 12:59:14 GMT
So the site & works done to date is valued at £1.57m & they are borrowing £4m outright. Wheres the bricks & mortar security in that. Come on, tell me I have missed something !!! The bricks are in the future, as are our repayments. I doubt the £4m will be drawn down on day1. At least Ablrate are being relatively modest in their fees, at 1.9% up front and 4% pa. I've seen at lot worse propositions than this. No-one has commented on the bid limit of £5k. That means that Ablrate think it will be popular and may go quickly. So it must be good and I have a spare £5k from SM sales waiting for 2pm. I may not hold to term, though.
Edit: Witnessed by a hairdresser? That changes everything!
'I doubt the £4m will be drawn down on day1' It's not for me unless this is clarified. And we had big money between us, waiting for this one
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Post by Ace on Oct 10, 2019 13:01:53 GMT
So the site & works done to date is valued at £1.57m & they are borrowing £4m outright. Wheres the bricks & mortar security in that. Come on, tell me I have missed something !!! The bricks are in the future, as are our repayments. I doubt the £4m will be drawn down on day1. At least Ablrate are being relatively modest in their fees, at 1.9% up front and 4% pa. I've seen at lot worse propositions than this. No-one has commented on the bid limit of £5k. That means that Ablrate think it will be popular and it may go quickly. So it must be good and I have a spare £5k from SM sales waiting for 2pm. I may not hold to term, though.
Edit: Witnessed by a hairdresser? That changes everything!
Let's hope this isn't a sign that we're all going to get a haircut!
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macq
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Post by macq on Oct 10, 2019 13:02:41 GMT
i like the bit on the F*******o site where under current projects it says 8 luxury 3 or 4 detached bedroom homes - "suitable for downsizers"!
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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 10, 2019 13:09:44 GMT
petrichory The multiple company directorships relate to altfi bonds issued by the parent company and SPV for other projects (appointed to more than 7 in the period)
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Post by ablrate on Oct 10, 2019 13:12:58 GMT
The bricks are in the future, as are our repayments. I doubt the £4m will be drawn down on day1. At least Ablrate are being relatively modest in their fees, at 1.9% up front and 4% pa. I've seen at lot worse propositions than this. No-one has commented on the bid limit of £5k. That means that Ablrate think it will be popular and it may go quickly. So it must be good and I have a spare £5k from SM sales waiting for 2pm. I may not hold to term, though.
Edit: Witnessed by a hairdresser? That changes everything!
Let's hope this isn't a sign that we're all going to get a haircut! There is a site advance initially and any draw down under the development advance will be against P******'s monitoring surveyors instructions.
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ilmoro
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Post by ilmoro on Oct 10, 2019 13:17:42 GMT
Let's hope this isn't a sign that we're all going to get a haircut! There is a site advance initially and any draw down under the development advance will be against P******'s monitoring surveyors instructions. ablrate I assume the initial first chargeholder advance is to purchase the site from the council? What will the LTV be on drawdown of own loan ie current site value of £1.67m? v ABL+ 1st charge loan. Will Ablrate have sight of IMS reports in order to update lenders on progress?
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criston
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Post by criston on Oct 10, 2019 13:18:16 GMT
Let's hope this isn't a sign that we're all going to get a haircut! There is a site advance initially and any draw down under the development advance will be against P******'s monitoring surveyors instructions. Is there tranche draw downs against the £3.11m P-----n first charge loan, or has it been taken in full ?
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macq
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Post by macq on Oct 10, 2019 13:20:10 GMT
even with that in place - it seems to me personally to be moving a little bit away from "asset backed lending" and maybe even a couple of the other recent loans which might explain the slower then usual take up, but i realise there is a risk/reward in place
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ilmoro
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Post by ilmoro on Oct 10, 2019 13:24:34 GMT
i like the bit on the F*******o site where under current projects it says 8 luxury 3 or 4 detached bedroom homes - "suitable for downsizers"! Look where they are based ... some of the most expensive real estate in the country so probably an accurate comment. A long as they have a decent kitchen to make Jam Rolly Poly
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criston
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Post by criston on Oct 10, 2019 13:29:07 GMT
No matter how you look at this with a initial value of £1.57m, I would have gone for Ablrate deal if the first charge of £3.11m was not there.
At 13% interest, take a risk as high as LTV 80% yes, but minus 63%, no. That's without any more information coming along.
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macq
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Post by macq on Oct 10, 2019 13:35:46 GMT
i like the bit on the F*******o site where under current projects it says 8 luxury 3 or 4 detached bedroom homes - "suitable for downsizers"! Look where they are based ... some of the most expensive real estate in the country so probably an accurate comment. A long as they have a decent kitchen to make Jam Rolly Poly Having seen Harry's place i don't think its him or anyone else from that location
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Post by Badly Drawn Stickman on Oct 10, 2019 14:10:38 GMT
No matter how you look at this with a initial value of £1.57m, I would have gone for Ablrate deal if the first charge of £3.11m was not there. At 13% interest, take a risk as high as LTV 80% yes, but minus 63%, no. That's without any more information coming along. These things are rarely as easy to gauge as just looking at the figures. We will effectively have no/little call on the asset. that may not be significant if the overall deal is likely to conclude successfully. So in this case the project viability is the key. Plenty of occasions where there has been a first charge on the asset, and it has ended in tears.
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Balder
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Post by Balder on Oct 10, 2019 14:10:54 GMT
i like the bit on the F*******o site where under current projects it says 8 luxury 3 or 4 detached bedroom homes - "suitable for downsizers"! Look where they are based ... some of the most expensive real estate in the country so probably an accurate comment. A long as they have a decent kitchen to make Jam Rolly Poly Has to be big enough for the 3 oven Rayburn after downsizing from the 5.
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macq
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Post by macq on Oct 10, 2019 14:20:40 GMT
with One arm of the business putting money into this loan on a P2P platform - is it only me who finds it strange about another part of the business offering an IFISA on their bonds?
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Post by ablrate on Oct 10, 2019 15:02:54 GMT
Perhaps this will help clarify some points above:
Loan Parameters
A bit of confusion may have been caused because we have tried to explain the arrangements that we have agreed with the borrower on loans that come over the platform. Basically it is our intention to work in partnership with the Borrower to bring multiple loan offerings to the platform. We had to therefore designed certain parameters to apply to this and future loans.
The Borrower has no intention of selling its £375k investment in this loan, and is offering the full amount as a first loss piece. We however wanted to offer the borrower some future flexibility and constructed a framework for a potential reduction in their holding:
Min 10% of total loan is held as first loss No trading in period of 4 months form drawdown Only trading at par Min hold cannot raise Ablrate Lenders hold above 80% LTGDV All to be with Ablrate consent
In this particular loan, the Borrower would not be allowed to reduce its hold below £157k.
Supporting Security
The Parent Company is transferring an investment of £630k to the Borrower’s balance sheet which will fall under Ablrate Lender’s debenture. This means Lenders have access to two projects in an event of default. The Borrower’s investments are often short-term in nature and these projects will be altered over time as they mature but the deal is that there is 100% on top of the outstanding loans.
First Ranking Lender
The Lender is providing a development loan at a good commercial rate. The pricing on the Ablrate loan reflects its subordinated position but together the project will have a blended rate of 9.7%.
Legal Charge
In this particular loan, the JV SPV will be the owner of the legal title and the first charge lender will be recorded as a chargee. The Borrower as 50% ordinary shareholder and sole preference shareholder is co-owner of the legal title. The Borrower has advised that in certain scenarios there will be a charge, in this case it is directly the legal co-owner on the land.
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