1351917187 (2811652081 & 2928842595) Isle of Wight Property

Very interesting read the valuation of PBL028, BTW made by the same people as the one presented for FS.

The North Field, valued 220k for SS, is now worth 772.000 GBP for FS (!).
The sum of North Field + 4 holidays cottages (which was Worth 220k+445k on SS) is now 772k for FS (and note that the cottages are already sold out via long term leasehold, so the value should only have decreased...).


There is somethingvery fishy going on here.

There is another insight into the platform musical chairs approach this borrower is adopting to his debt funding over on TC, via an arms length SPV of a bridging finance company, C****p 5 Ltd, an 18 month loan running till July 2017 for £306k @ 11%

The security for that TC loan is "Part of North Field, East Field & South Field" and was valued at £560k by A****c in December 2015, so it would appear the TC loan is about to be refinanced.  The "Part of North Field" refers to the fact that 2 of the bungalows were excluded.

Glad I came on here to check opinions before putting 10k in!  Await FS reply with interest.

In respibse to fs post I would say that, if not alrwady done, you should post greater levels of detail on the loan particulars on your platform. That is, unless you don't want the true pucture to be known by all investors on your platform about this borrowers behaviour?

Apologies if the previous message was not clear - the detailed information in the valuation is already available for all to read. I was suggesting that anyone that needed additional clarification on the valuation should make direct contact.

To respond to the specific point raised relating to the North Field (which forms only part of the security) the information on the valuation gives the following breakdown:

North Field:
4 holiday bungalows, sold by way of long leasehold interests of 99 years, at initial ground rents of £500 per annum per lease = £500 x 4 x 5% (20YP) = £40,000
1 static caravan pitch, at £15,000 = £15,000
1 lodge pitch with lodge in situ, subject to license, at £3,000 per annum = £3,000 x 5% (20YP) = £60,000
3 serviced lodge pitches, at £24,000 per pitch = £72,000
20 lodge pitches (hard standing not yet in situ), at £24,000 per pitch = £480,000
14 touring pitches, at £7,500 per pitch = £105,000
TOTAL VALUATION: £772,000

At the time of the earlier valuation the North Field security only consisted of the following:
35 x touring pitches @ £5,000 per pitch = £175,000
15 x tent pitches @ £3,000 per pitch = £45,000
TOTAL VALUATION: £220,000

In between the two reports the facilities of the park were substantially expanded and improved, raising the value of existing pitches. In addition the LDC was issued and multiple additional planning applications were submitted and approved, which enabled some of the existing pitches to be upraded and additional (higher value) pitches to be added.

The valuation is not simply a rehash of a previous valuation - it is an independant survey carried out by a professional RICS valuer, supported by appropriate level of PI. It is based upon the current status of the park, which has had a considerable level of investment over the last two years to enable it to grow both in size and value. The 18 page report gives a breakdown of the full details, available for all potential investors to view. Only one small part of it is reproduced above to help forum readers understand the added value.

As with all of our loans we endeavour to provide potential investors with as much information as possible. If anything is not clear in the information provided we are always available to try and clarify it, but in the end it remains a personal choice whether they wish to invest in a particular loan.

FundingSecure

I had problems finding the planning applications. I was searching the name of the Holiday Park (R******) and found one application for South Field. Drop the first "e" and search (R*****) and several others will be found.

/www.iwight.com/planning/PlanAppSearchHistory.aspx

I have no competence on this subject either.  But if the weak pound triggered by the Brexit issue continues, ISTM that people will take more holidays closer to home, and that ought to make holiday destinations like this one more attractive. Which ought to help support demand for this borrower's plans.

Does that sound like a reasonable conclusion to draw?