arbster
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Post by arbster on Jun 21, 2016 7:47:15 GMT
There's another four tranches coming, I wouldn't think investors would be in every tranche. I have enough exposure to this loan after the first tranche and I would expect a few people are thinking the same... Probably means a number of people will sell some of their first tranche holding to get into the longer-dated subsequent tranches.
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SteveT
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Post by SteveT on Jun 21, 2016 7:59:16 GMT
There's another four tranches coming, I wouldn't think investors would be in every tranche. I have enough exposure to this loan after the first tranche and I would expect a few people are thinking the same... Probably means a number of people will sell some of their first tranche holding to get into the longer-dated subsequent tranches. All tranches are dated the same: 22/10/17
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Post by GSV3MIaC on Jun 21, 2016 8:17:46 GMT
I don't see the downside of having a bid limit for 24 hours. Even on this one. Easier to remove one than add one after everything is sold out.
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locutus
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Post by locutus on Jun 21, 2016 8:21:29 GMT
I don't see the downside of having a bid limit for 24 hours. Even on this one. Easier to remove one than add one after everything is sold out. Discourages BHs from investing in the platform which in turn would allow MT to secure larger loans?
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Post by GSV3MIaC on Jun 21, 2016 8:24:12 GMT
But there's another 1.2m along for the BHs later. 8>.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jun 21, 2016 9:04:08 GMT
We went through all of this on SS before they introduced pre-funding. That solved one problem but, in their case, produced others as people gamed the system. IMO all MT need to do is allow pre-funding with a time limit restriction on sale (and of course no INPL). This would give the best of both worlds.
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goopy
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Post by goopy on Jun 21, 2016 10:00:21 GMT
But there's another 1.2m along for the BHs later. 8>. But there's another 1.2m for the small investors later.
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Post by MoneyThing on Jun 21, 2016 11:20:24 GMT
Afternoon,
We are just coordinating the next £300,000 tranche to drawdown tomorrow to go live on the platform on Thursday (will go on pending this afternoon).
We will also put a bid restriction in place for the 1st 24hrs of 1% (£3,000), which will hopefully allow the loan to last a suitable time.
Kind regards,
Ed
P.S. Looking to launch a £200,000 AE loan (HP agreements), on Friday.
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Post by GSV3MIaC on Jun 21, 2016 15:06:07 GMT
But there's another 1.2m along for the BHs later. 8>. But there's another 1.2m for the small investors later. Unless they're 5 minutes behind the BHs.
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Post by GSV3MIaC on Jun 21, 2016 15:10:25 GMT
We went through all of this on SS before they introduced pre-funding. That solved one problem but, in their case, produced others as people gamed the system. IMO all MT need to do is allow pre-funding with a time limit restriction on sale (and of course no INPL). This would give the best of both worlds. Bottom up allocation avoids the game playing, and no INPL probably does too - not sure a sale restriction is required.
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goopy
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Post by goopy on Jun 21, 2016 15:14:51 GMT
Let's wait and see if all the tranches sell as quickly as the first. My guess is that they won't and there will be more than enough for everyone.
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jjc
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Post by jjc on Jun 22, 2016 13:53:58 GMT
Hi folks, new to this loan & just skimmed things quickly so forgive the possibly naive q's/misunderstandings:
1. what's the current state of construction & targeted completion date (agent's website says latter is 4Q17 ie targeting 17/18 academic year, sounds a bit of a squeeze for a 6 block 249 unit site unless works already underway)? 2. how much has been taken in pre-sales so far (76 units if AIUI from VR £5k/unit = just 380k). Exit is from sales of units AIUI, so unless pre-sales increase (so far 9-10/month, remaining ones need to be sold at about 50% higher rate) & perhaps more to the point the 95% non-deposit proceeds are quickly raked in there could be probs. Do we have any visibility on the purchase payment schedule (5% deposit, x% at point Y, balance at point Z) for the units? 3. Build costs of 9.5m on GDV of c. 17m suggests the borrower must be well-capitalised to get this development over the line, but don't see this mentioned anywhere. The c. £2m MT are funding is only a very small part of this project's requirements, do we have a view of the wider picture? 4. How much skin in the game does the borrower have, & what prior experience developing student accommodation (mentioned in loan details but no refs/examples stated) can we count on?
I like 13% as much as the next man but do wonder what the current state of play is on site & how the wider deal & sales plan fleshes out.
This tranche's release just 1D pre-Brexit vote perhaps could have been comfortably postponed 48 hours for everyone's peace of mind? 1st charge holder will still be there after all..
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Post by SophieThing on Jun 23, 2016 9:46:49 GMT
Hi JJC,
Thanks for your questions.
1. State of build: the build is estimated to take 9 months to complete. The plan is to start the build at the beginning of July and complete in Sept 16 in time for the start of the academic year.
2. Units: Cost of units off-plan is £60k. To date, 76 of 249 have been sold and a 25% deposit received. After fees, £5k of the deposit is retained by the developer, so today £380 has been received. 3 months into the build, a further 25% is due and 100% of this is retained by the developer. The balance is paid on completion.
3. Valuation and finance: the valuation is based on the current value of the site with planning (undeveloped) and we have lent 60% of that value. We plan (subject to investor appetite) to continue to fund the development in stages, remaining at 60% LTV based on current QS reports. This is sufficient to complete the build. If there is not sufficient investor appetite, they will seek other funding.
4. Track record of the developer: Hockney Court 48 student studios built and sold Appleton Point 160 student studios built and sold Station Court development of 13 houses built and sold Stonegate Mews 15 apartments built and sold Empress Mills Trawden 21 houses 12 apartments built and sold Paddock Way 12 apartments built and selling final units Barrowford 14 houses built and selling remaining houses Little Toms 9 houses built and sold
Once I have the latest QS report I will share it with lenders.
In regard to delaying- we've already filled one tranche and there were comments on this forum that some felt they had missed out. We therefore brought this tranche forward.
Kind regards
Sophie
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oldgrumpy
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Post by oldgrumpy on Jun 23, 2016 9:52:39 GMT
I don't quite get point No 1 SophieThing . Confirm the dates , please.
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Post by SophieThing on Jun 23, 2016 10:05:50 GMT
Hi Oldgrumpy,
Sorry- it is a 14-15 month build. Mis-type.
Kind regards
Sophie
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