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Post by bengilbert on Nov 13, 2016 19:12:04 GMT
It's near the bottom of the loan details - 'To aid liquidity, should any part of the loan remain unsold by 25 November 2016, Broadoak will purchase all remaining loan parts.'
If we buy up any remaining part of the loan, we would likely look to make it available on the secondary market, although we might place it with our other investors. We would try do so in such a way as to maintain liquidity for other MT investors - releasing loan parts only when there was little or none for sale from platform investors.
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Post by bengilbert on Nov 10, 2016 15:10:10 GMT
Hi I thought M********* H*** was drawing down tomorrow is this not going ahead now? Thanks Yes, it's drawing down tomorrow and should go live tomorrow afternoon. Preview should be posted later today.
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Post by bengilbert on Nov 2, 2016 11:19:27 GMT
bengilbert I was having a look at your website the other day and noticed that the blog had gone very quiet lately. An occasional update of what's going on would be reassuring. Thanks mikeh - you're right that we've not been updating this recently. Let me speak to the team and see if we can get back to more regular updates. Perhaps we'll do a monthly roundup. It doesn't reflect a lack of activity! We've just been keeping communications to this forum and to our individual investors directly, rather than via the website. But I do agree we should get back into the habit of keeping the site blog up to date.
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Post by bengilbert on Nov 2, 2016 10:42:23 GMT
Upcoming loans
Nothing imminent though some potential deals with drawdown in the second half of the month under discussion.
Current loans
B******l Road, Sandbanks (BPF543) After receiving the tree report, the revised planning proposal has now been submitted. If and when planning is approved, the borrowers will be purchasing the adjacent site and will refinance the present loan with a development loan for the combined plot, some or all of which may be made available on MoneyThing.
Residential Development - Streatham (BPF397) The borrowers have requested an extension to give them time to achieve a higher sale price on the property. We have approved this extension in principle, subject to receipt of an updated valuation, which we have instructed and expect to receive early next week. Should any investors wish to be repaid on the original due date, Broadoak will repurchase any holdings left for sale - all investors who wish to be repaid on time will be. The extension will be for 6 months, though we would expect it to be repaid within 3 months.
Sutton Coldfield Bridging Loan (BPF479) The borrower is finalising with their bank the timetable for a potential refinance.
M***** H*** Development Loan (BPF407, 501 & 526) Works are progressing well. The tenant of the Annex is due to enter into their lease at the beginning of December. On the adjacent development site, the final document required before submitting the planning application is a right of light report which is due to be received in the week commencing 7 November, after which the application will be made. A drawdown of £1,300,000 will be made on 11 November.
W***n Hotel Development (BPF528 & 571) Works are going well. A drawdown of c. £250,000 will be made around the middle of November.
Lut** Bridging Loan (BPF534) No update - still awaiting a decision from the planning department (current valuation is based on the value without planning).
Residential development in Birk**** (BPF536, 537, 541, 542, 566 & 567) 12 of the remaining 20 apartments now been sold, with reservation fees having already been paid on 8 of these. A drawdown of c. £200,000 will be made around the middle of November.
Residential Development in The Ho******, Sandbanks (BPF562 & 574) The borrowers have accepted an offer to purchase the property for £4.9 million. Legals have been instructed but not yet commenced, so there is no certainty about the sale, and works continue on the development. Should the sale go through, the loan is expected to repay within the next two months.
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Post by bengilbert on Oct 26, 2016 9:49:44 GMT
Although we were ready for this larger drawdown to be drawn this Friday (28 October), it is going to be put back, very likely to 11 November. This is through no fault of the borrower. The drawdown is due to be paid into an escrow account on request of the building's freeholders (E*** L******* M***** C*****), in order to ensure funds are available to progress the works to a satisfactory standard. We were however told yesterday that the freeholders' solicitors were not yet ready to receive the funds. They have indicated they will be ready by 11th November, and we've asked them to come back with a firm commitment on this.
Apologies if this causes inconvenience to anyone.
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Post by bengilbert on Oct 22, 2016 16:56:40 GMT
Can somone explain how this loan will rank vis-a-vis BPF536, the first round loan for the same development. Both are defined as Tranche A in their round and rank ahead of Tranche B in the same round, but I'm not clear of the relative rankings in different rounds, or are they pari passu? All of the tranche As are pari passu with one another, and all of the tranche Bs are pari passu with one another.
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Post by bengilbert on Oct 10, 2016 9:42:38 GMT
We have now spoken to the valuer who has confirmed that he expects the value of the completed development to be around £1,000 per square foot. He's visiting a site at present but will be sending us an email later confirming this.
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Post by bengilbert on Oct 9, 2016 19:48:05 GMT
Sorry, you're quite right on that. We'll get the valuer to clarify exactly what he meant tomorrow. I must say, sadly, that this is very disappointing. You should not rely on us to do your DD and these 2 errors should really have been picked up before posting on the site. The line we are talking about here was in the 'special requests and other information' section of the valuation. It's not a question of 2 errors but of one typo which can be interpreted in 2 ways, and we'll get a clear answer on which way is correct. There is no ambiguity about the valuation figure itself.
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Post by bengilbert on Oct 9, 2016 18:31:29 GMT
Yes, we did notice that. Even Sandbanks isn't quite there yet... In context, it's clear that the valuer intended £1,000 per square metre, so we decided against asking for a full rewrite of the valuation. It would have to be £1,000 per square foot to get to the £5,000,000 valuation for the completed house. Did he get the units wrong also? Sorry, you're quite right on that. We'll get the valuer to clarify exactly what he meant tomorrow.
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Post by bengilbert on Oct 9, 2016 10:06:10 GMT
22.0 ' £1,000,000 per square metre ' ... I'm in Yes, we did notice that. Even Sandbanks isn't quite there yet... In context, it's clear that the valuer intended £1,000 per square metre, so we decided against asking for a full rewrite of the valuation.
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Post by bengilbert on Oct 5, 2016 19:31:20 GMT
tomtom , I think you may be referring to the valuation report, since the independent report has not yet been released. The valuation is indeed a desktop valuation. The report which we commissioned did of course include a site visit. I'd also add that our office is located near to the site and so we have been able to track progress regularly ourselves. Point taken so I assume that this report will be available before the next larger loan is offered up. On the other hand how can we be convident that it is accurate as it relies on other reports which could be overcooking the progress with out visually checking onsite progress? The progress report will be available before the £1.3 million drawdown (of which only a part might go on MT) is listed. This report is the result of a site visit from an experienced monitor with whom we have a 15 year relationship and who works for a number of bridging companies as well as high street banks, and will include plenty of photographs. The desktop valuation is not based on what the borrower reports but on reports from a Quantity Surveyor, working for us, who verify expenditure on the building. And as I said, we are also able to keep track of progress informally ourselves. We have a high degree of confidence in the borrowers but of course we evaluate progress via independent professionals and not their word.
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Post by bengilbert on Oct 5, 2016 19:12:25 GMT
A new drawdown on the M*** H*** loan has been listed today, to go live tomorrow. Lenders may notice that we have used the previous valuation in working out the LTV. We are due to grant a further drawdown of £1.3 million in the next few weeks (exact timing and amount to be made available on MT to be announced), and have today received an updated valuation for use with this drawdown, showing a further increase in the security value (total security valued at £7,780,000 after drawdown of the £1.3 million, which will be placed in escrow against future build costs). However, since there is no explicit valuation for the value prior to the £1.3 million being drawn down, we have chosen to be conservative and use the previous valuation. On this basis, lender LTV is currently 33.2%. We have also commissioned a full progress report on the development from an independent monitoring company which will be ready for inclusion in the listing of the larger drawdown. I have just read the report from the independent monitoring company and find it very strange that they say in the report alongside other disclaimers " that they have not inspected the site ", So how can they claim to give a proper report if they have not inspected the site, they are relieing on other reports which could be untrue. I thought the idea of an independent monitoring company would be required to check the progress is as reported. tomtom, I think you may be referring to the valuation report, since the independent report has not yet been released. The valuation is indeed a desktop valuation. The report which we commissioned did of course include a site visit. I'd also add that our office is located near to the site and so we have been able to track progress regularly ourselves.
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Post by bengilbert on Oct 5, 2016 18:17:08 GMT
Upcoming loans
Residential development in Sandbanks. Loan amount c. £250,000, current LTV 59.8%, LTV capped at 69.5% during the development, 12 month term.
Current loans
B******l Road, Sandbanks (BPF373 & 383 - now BPF543) Loan extended for 6 months, with all investors wishing to exit on the original end date repaid. The borrowers have been asked to submit an additional Tree Report, which is due back this week. Beyond this, the only thing outstanding before submitting the planning application is to finalise the affordable housing contribution, which is in the final stages of negotiation with the council.
Residential Development - Streatham (BPF397) The borrowers have received approval in principle from their bank on refinancing the loan. There is also interest in the property from buyers, so the borrowers intend to establish the highest sale price they can achieve now before deciding whether to sell or begin the refinance process.
Sutton Coldfield Bridging Loan (BPF479) Lloyds have indicated that they are happy in principle to refinance but cannot initiate the process until the borrower has owned the property for six months. The borrower is considering selling the property before this date.
M***** H*** Development Loan (BPF407, 501 & 526) Work proceeds on the main building. A further tranche is going live this week. We have commissioned a full report on progress from an independent loan monitoring company which will be made available to lenders later in the month. The inspection has taken place and the inspector has sent us his conclusion: 'The development appears to be well planned and works are being completed to schedule. The developer has a good understanding of the development and is fully aware of works and costs required. Once completed this development will be well suited to this location.'
W***n Hotel Development (BPF528) Work continues on the development. A further drawdown of around £110,000 is expected within the next few weeks after the valuer has visited.
Lut** Bridging Loan (BPF534) Drawn down last month.
Residential development in Birk**** (BPF536, 537, 541 & 542) Drawn down last month.
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Post by bengilbert on Oct 5, 2016 18:14:00 GMT
A new drawdown on the M*** H*** loan has been listed today, to go live tomorrow.
Lenders may notice that we have used the previous valuation in working out the LTV. We are due to grant a further drawdown of £1.3 million in the next few weeks (exact timing and amount to be made available on MT to be announced), and have today received an updated valuation for use with this drawdown, showing a further increase in the security value (total security valued at £7,780,000 after drawdown of the £1.3 million, which will be placed in escrow against future build costs). However, since there is no explicit valuation for the value prior to the £1.3 million being drawn down, we have chosen to be conservative and use the previous valuation. On this basis, lender LTV is currently 33.2%.
We have also commissioned a full progress report on the development from an independent monitoring company which will be ready for inclusion in the listing of the larger drawdown.
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Post by bengilbert on Sept 28, 2016 23:47:15 GMT
MoneyThing , I'm a bit confused about 66) Sandbanks 12 month loan due to be launched in 2 weeks' time. Is this related to the existing Sandbanks loan which is being rolled over for 6 months in 2 days' time? It's a separate loan, secured on a completely separate and unrelated property. The same architect, with whom we've worked for a long time, is working on both developments.
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