Once again though, the FS updates are misleading "27/04/2018 Work is continuing on the properties with the cladding now gone up". I assume that update referred to just the left hand property, given the cladding on the righthand one is currently being installed.
On a scale of 1-10 of FS "fabrications", I'd suggest that in this case it is small beer: relative to e.g. Whitehaven, the scale of metaphorical "fabrication" is in inverse proportion to the level of actual fabrication. A property with cladding on - even if only one of three - is, I would suggest, rather better positioned than one with apparently 'ground works complete, timber frame ordered, paid for, built but not yet delivered to site...", and whatever other Alice in Wonderland fantasy statements FS may have posted up.
Heads up - filling on the PM at the moment is a supplemental facility ranking behind a senior £945k but at the same 12% rate. Tranches of senior loan available on SM at -1%.
(I am not selling on SM)
I'd personally rather see some actual rather than proposed progress on the borrower renewing the 5 tranches of this that are overdue for renewal before swinging big. Also, one of the borrower's other loans on the platform looks rather thirsty for cash too and is rather scraping the LTV barrel.
Agree with you though. As (nearly) always, supplemental loans remain a near financially suicidal prospect on FS. I usually point towards the differential on Proplend, but I can use MT for a refreshing change now - senior 12%, junior 16% on their newest loan.
This loan - The same 12% interest for either 46% LTV plus a 1% discount, or 65% LTV with no discount. I'm really not sure what FS, or indeed anyone investing in the supplemental loans, are smoking.
Updated - The first property is essentially complete - once the title has been split it will be refinanced, pending sale completion. Development of the remaining two properties continues. Further update by 12th July
Two observations on that photo, no attempt has been made to give this first plot "kerb appeal" to act as an unofficial show home, and the second plot still hasn't had the render applied to it or its garage.
Disclosure: I'm a shareholder in Assetz Capital Limited