pfffill
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Post by pfffill on Jan 29, 2021 13:55:24 GMT
If this is the "C******** R***, Lad****k, Scotland" thread, update today states:
"Solicitors have been instructed in respect of the default position of the loan. In the meantime, the borrower remains in contact with instructed representatives, providing updates as to the status of the site. The borrower has advised that sales have been agreed. It is understood that whilst development has been hindered by the pandemic and local restrictions being in place, that matters are now due to progress to completion in the near future. An update will be provided in due course."
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pfffill
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Post by pfffill on Jul 30, 2021 13:41:21 GMT
Update today:
"As FS does not hold a floating charge, the process of placing a company into administration must be done via application. The administration application has now been made and is due to be advertised in the Edinburgh Gazette and The Scottish Daily Mail."
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sqh
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Post by sqh on Oct 16, 2021 12:01:52 GMT
Now available for offers over £2m. Needs to make more than that, and probably will.
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iRobot
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Post by iRobot on Oct 16, 2021 15:49:55 GMT
Now available for offers over £2m. Needs to make more than that, and probably will. The current CCL valuation suggests a GDV of £5.03m. The original one from FS in July 2017 was for £5.02m Not much movement in two years given that prices for new builds in the Fife area have generally risen 20-25% over that period. Surely that original valuation couldn't have been overstated by 25% - could it??? I agree it should fetch more than the 'offers over' price of £2m but with £3.2m of lenders' capital outstanding on this, will it fetch in excess of 50% more? (Almost a moot point but lenders' interest currently sits at around £940k and is increasing by a little over £1k per day)
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sqh
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Post by sqh on Oct 16, 2021 16:26:29 GMT
Now available for offers over £2m. Needs to make more than that, and probably will. The current CCL valuation suggests a GDV of £5.03m. The original one from FS in July 2017 was for £5.02m Not much movement in two years given that prices for new builds in the Fife area have generally risen 20-25% over that period. Surely that original valuation couldn't have been overstated by 25% - could it??? I agree it should fetch more than the 'offers over' price of £2m but with £3.2m of lenders' capital outstanding on this, will it fetch in excess of 50% more? (Almost a moot point but lenders' interest currently sits at around £940k and is increasing by a little over £1k per day) I'm not sure that the whole £3.2m was released. Do we know for sure if that is the case?
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agent69
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Post by agent69 on Oct 16, 2021 16:44:01 GMT
Now available for offers over £2m. Needs to make more than that, and probably will. The current CCL valuation suggests a GDV of £5.03m. The original one from FS in July 2017 was for £5.02m Not much movement in two years given that prices for new builds in the Fife area have generally risen 20-25% over that period. Surely that original valuation couldn't have been overstated by 25% - could it??? I agree it should fetch more than the 'offers over' price of £2m but with £3.2m of lenders' capital outstanding on this, will it fetch in excess of 50% more? (Almost a moot point but lenders' interest currently sits at around £940k and is increasing by a little over £1k per day) If it was only 25% you should think yourself lucky.
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adrian77
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Post by adrian77 on Oct 16, 2021 18:05:49 GMT
how many if these houses are actually finished - 2 blocks just have the sub-structure completed! Wonder what nearing completion means - and the buyer needs to install street lighting etc
Here's what one immortal wrote
lloks to me that in 2019 the D**** brothers (interesting name) had a total of £868.5K in director loans - and now they are bust - well I wonder how much of that money we will see - I guess zero!
So yes maybe they knew exactly what they were doing!
I think you got that one a tincy bit wrong ?
This is the sort of project I take on albeit on a smaller scale - would I pay £5m for this (which is wooden framed which I really don't like) - would I hell.
Hopefully not too much of a disaster....
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iRobot
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Post by iRobot on Oct 16, 2021 20:53:55 GMT
I'm not sure that the whole £3.2m was released. Do we know for sure if that is the case? I've visibility of records that show T7 (1337547203) was drawn down 22/08/19 for £365k and my own notes suggest a T8 (2167441571) for £360k was to be taken on (or around) 27/09/19 - that is less than a month before FS called in the Administrators so maybe that T8 didn't get released. For T1-T7 lenders, that T8 would effectively represent a near 13% 'overhead' - so I expect they'll be hoping it wasn't released!
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iRobot
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Post by iRobot on Oct 16, 2021 20:59:11 GMT
This is the sort of project I take on albeit on a smaller scale - would I pay £5m for this (which is wooden framed which I really don't like) - would I hell. Hopefully not too much of a disaster.... But would you pay £2m for it? Or even £3m? That's really the question the Agents are posing, isn't it? Care to hazard a professional opinion on what you think it will achieve?
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sqh
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Post by sqh on Oct 16, 2021 22:21:29 GMT
I'm not sure that the whole £3.2m was released. Do we know for sure if that is the case? I've visibility of records that show T7 (1337547203) was drawn down 22/08/19 for £365k and my own notes suggest a T8 (2167441571) for £360k was to be taken on (or around) 27/09/19 - that is less than a month before FS called in the Administrators so maybe that T8 didn't get released. For T1-T7 lenders, that T8 would effectively represent a near 13% 'overhead' - so I expect they'll be hoping it wasn't released! Now it all makes sense. I think T8 got released in March 2020. It was arranged by the administrator and has priority. If it hadn't been released then FS may have failed to fulfil their commitment to the borrower. The borrower had a year or more to get the site finished, but let himself and lenders down. This was an award winning development, which should be much nearer completion. It appears the borrower downed tools due to Covid-19 and never got restarted and the money from Tranche 8 hasn't been spent.
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Post by richardw on Oct 17, 2021 15:41:07 GMT
I gather that was indeed the tranche history but yes, not clear if T8 was released.
To help clarify what happened, I have some first hand knowledge. The main problem was that unlike in England, Sturgeon's SNP closed all building sites North of the border at the start of Covid. On top of that, even when they were finally allowed to re-open, the local authorities and utility companies were still 'working from home' and mostly refusing to attend site. Net result was the developers were physically prevented from completing the project before the money ran out & have now suffered a total loss on their own slice of the investment.
Regarding the figures, Fife agreed to buy the completed development for just under £5M and a local source from the site tells me the outstanding work is no more than 'several hundred thousand'. So on the face of it, £2M is way under priced and even if it sells for £2.5M, someone stands to make a whopping profit - while we will be lucky to see 70%.
Richard W.
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adrian77
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Post by adrian77 on Oct 17, 2021 21:39:46 GMT
I would love to ! Impossible to say without seeing just how much has been completed - cost of the street lighting etc - the afforadable homes etc Besides this property game is a funny old business and some properties are over-sold whilst others are a bargain - also I don't know the local market and neither Scots Law etc
I won't argue with the £2m figure and £5m seems far too high to me - as if FS would overvalue any of their (OUR) assets
Interesting one to follow - tbh the director loans really worry me - no idea how the Scots would deal with this.
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Post by richardw on Oct 18, 2021 8:06:09 GMT
So we have become 2nd charge holders.
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Post by overthehill on Oct 18, 2021 8:09:37 GMT
I haven't been following this one at all as not in it. What I know is this is a very popular location in Fife in part due to the mainline railway station and commuting to edinburgh, dundee, aberdeen. I see no reason it wouldn't fetch a good price if the build quality is there.
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adrian77
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Post by adrian77 on Oct 18, 2021 8:32:14 GMT
what the hell is happening here ! This new holder has been subjected to several applications for compulsory strike off etc etc- we have been down this path before!
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