dovap
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Post by dovap on Aug 13, 2019 8:09:53 GMT
looks a lovely spot to be fair 'prime' if you like. bargain at 100%+
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Post by Badly Drawn Stickman on Aug 13, 2019 8:44:08 GMT
Questions for consideration for a prospective FAQ:
a) Does the company incorporated earlier this month (SIC 55100 - Hotels and similar accommodation ) by the borrower using the 'M' version of his name have any relevance to this Oxfordshire project ?
b) On drawdown of this loan, how much 'skin in the game' will the borrower have ? i.e. what % does the MT loan represent of the total expenditure on the project to date (purchase price + VAT + design + planning)
c) The most recent filed accounts are y/e Dec 2017 and show shareholder funds are negative. Has MT had sight of management accounts for y/e Dec 2018 (due for filing in next 6 weeks or so), and if so what is the bottom line shareholder funds ?
I look forward with interest to the answer to b). Especially given that it is anticipated that the borrower would do an 'Oliver twist' for a third tranche. My own back of an envelope figures suggest the 1.5 million initial loan would mostly cover the borrowers out of pocket expenditure to date, possibly including the 8 month retained interest on this proposed loan. Not knowing how much the existing loan is for and at what rate or any of the fees incurred does mean I have done a lot of guessing on these figures. Working on the general consensus that the 6 million valuation is little short of fantasy, we are being offered a very suspect loan at a comparatively low return. Given the 'interesting' state of the current MT loan book, I really anticipated something a little more for what is in effect a platform relaunch. In fairness nothing offered would have induced me to add funds at this time and my interest was purely curiosity.
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robski
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Post by robski on Aug 13, 2019 8:51:03 GMT
I'm out. Was sitting on the fence on this one, but as someone who has a fence to fix after the storms of the weekend I am reminded of the final scene of terminator, "a storm is coming"
It feels to me like the "borrower" wants to get his money back, to make the sale someone elses risk.
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pi
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Post by pi on Aug 13, 2019 8:59:25 GMT
Thanks MT for the new cleaner format. Much clearer than before and it made me confident to stay clear of this loan as 6 million valuation is more like Lendy's GDV.
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snowmobile
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Post by snowmobile on Aug 13, 2019 9:12:29 GMT
This is not what I expected at all after the recent change of strategy announcement. It doesn't look lower risk to me. I'm amazed there seems to be so little mention of their huge neighbour in the proposal. Surely they are key to whatever happens to this building, given that their supply routes completely surround the site. The main customer base for the health club and bars would be the workers from there, but they are notoriously low paid. There may be a demand for another 4 star hotel in the general area, but on that site with that huge neighbour? Really? If the proposed use was a residential training centre for the retailer it might be more plausible. If I booked a luxury spa break and ended up there I would be very disappointed! There is even mention of planning for a bridal suite in the valuation report! Handy for quick delivery of the wedding gifts I suppose
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r00lish67
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Post by r00lish67 on Aug 13, 2019 9:24:02 GMT
looks a lovely spot to be fair 'prime' if you like. bargain at 100%+ You really could not get more Prime. They could probably just throw a Kindle out of the window if you set your delivery address there.
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Post by harryvederci on Aug 13, 2019 9:27:23 GMT
a contrarian view might be that as well as A with that big office block behind. there are several multinational companies based down the road at Banbury Cross including Jacobs Douwe Egberts, so the business plan might include a big chunk of corporate bookings with conference facilities? Unfortunately there is no steer on corporate/leisure/functions % in the report as far as I can make out.
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r00lish67
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Post by r00lish67 on Aug 13, 2019 9:52:10 GMT
I have a suggestion. Since this one seems highly unlikely to fly off the shelf anyway, why don't we all just wait the 2 months for the unverified, unsigned, draft contract of sale that underpins the £6m valuation to be verified, signed, and formalised as per the stated loan covenant?
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Post by Deleted on Aug 13, 2019 12:37:11 GMT
My thoughts
1) Luxury hotel in Banbury, not a bad town but really?
2) Where in Banbury? 3) Oh my god there!
I think MT is right to offer this deal to us, I probably will only put up a small sum, they've come with a short term commercial deal at a time of uncertainty and offered it in two formats, well done. Given the short term the 9%, 12% is really much less, as annualised really means what you will get over the year not what the number is but hey projects do go on, and on.
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eeyore
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Post by eeyore on Aug 13, 2019 14:14:46 GMT
The parallels with MTBA822 (Newcastle-under-Lyme Bridging Loan) look uncanny - disused property purchased by borrower, business plans drawn-up, planning permission obtained, "agreements" in place, P2P funds sought. Just as with the N-u-L loan, how much confidence do I have in the borrower making this project a success (enough at least to pay back the loan and interest)? I stayed clear of the N-u-L loan, I think I'll do the same with this one.
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hazellend
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Post by hazellend on Aug 13, 2019 14:36:30 GMT
The parallels with MTBA822 (Newcastle-under-Lyme Bridging Loan) look uncanny - disused property purchased by borrower, business plans drawn-up, planning permission obtained, "agreements" in place, P2P funds sought. Just as with the N-u-L loan, how much confidence do I have in the borrower making this project a success (enough at least to pay back the loan and interest)? I stayed clear of the N-u-L loan, I think I'll do the same with this one. I guess you could say that NUL is looking like it might actually hobble across the finishing line against all odds
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sj
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Post by sj on Aug 13, 2019 15:05:08 GMT
I though that lower rates for us would mean lower risk, but the valuations are laughable i'm afraid. Hard pass from me.
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Post by funkymonkey on Aug 13, 2019 18:01:25 GMT
I haven't been convinced that a £1m purchase price plus planning permission and an unsigned promise to buy for £6m makes the site worth £6m. And if it all goes wrong, the valuer's public liability insurance limit is lower than £6m.
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cwah
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Post by cwah on Aug 13, 2019 18:06:25 GMT
I've been F*** before on residual valuation on Paisley loan. No more.
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mikeh
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Post by mikeh on Aug 13, 2019 18:13:01 GMT
I've been F*** before on residual valuation on Paisley loan. No more. Same valuer too.
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