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Post by Badly Drawn Stickman on Oct 9, 2019 16:15:14 GMT
Or maybe cork, very trendy at the moment.
Email is interesting, a new direction (For Ablrate anyway).
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seb8072
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Post by seb8072 on Oct 9, 2019 16:35:19 GMT
Isn't this the point when things started going pear-shaped for Collateral and Lendy? I wouldn't want to see Ablrate go the same way!
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macq
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Post by macq on Oct 9, 2019 16:49:47 GMT
As its listed as property development not so sure its really a major new direction?
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Post by bracknellboy on Oct 9, 2019 17:16:07 GMT
Or maybe cork, very trendy at the moment. especially in Ireland
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r1200gs
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Post by r1200gs on Oct 9, 2019 17:18:28 GMT
Add the walking dead FS to Lendy and Collateral. Perhaps this lot could do the job right?
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tommo
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Post by tommo on Oct 9, 2019 18:00:59 GMT
Isn't this the point when things started going pear-shaped for Collateral and Lendy? I wouldn't want to see Ablrate go the same way! Judging by the email, they haven't jumped at the first opportunity that came their way. Seems like they've done a fair bit of background work on this and I trust the Abl brand, so happy to take at face value.
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Post by df on Oct 9, 2019 22:46:20 GMT
Isn't this the point when things started going pear-shaped for Collateral and Lendy? I wouldn't want to see Ablrate go the same way! Judging by the email, they haven't jumped at the first opportunity that came their way. Seems like they've done a fair bit of background work on this and I trust the Abl brand, so happy to take at face value. 43% of 'borrower first loss' contribution also gives a bit more comfort.
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Post by Badly Drawn Stickman on Oct 9, 2019 22:52:12 GMT
Judging by the email, they haven't jumped at the first opportunity that came their way. Seems like they've done a fair bit of background work on this and I trust the Abl brand, so happy to take at face value. 43% of 'borrower first loss' contribution also gives a bit more comfort. I was tempted to put the loan details from the email into the opening post, but wanted to avoid abusing the information. Maybe ablrate would like to give guidance on what they are happy with on that. Would be useful for reference.
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Post by Ace on Oct 9, 2019 23:34:44 GMT
When they say that the borrower's team consists of people they have a great relationship with, are we expecting to see some very familiar names?
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Post by df on Oct 10, 2019 7:32:08 GMT
When they say that the borrower's team consists of people they have a great relationship with, are we expecting to see some very familiar names? It's not explicit, but reads to me as a new borrower.
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blender
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Post by blender on Oct 10, 2019 8:14:54 GMT
Often new borrowers are the same people in false moustaches and glasses. 80&98 were property being developed, though only bridging. What concerns me is whether there will be any charge on the actual development property - even a second charge? 'Assignment by Way of Security over Project Specific Interests and Security' does not sound very first chargy. We shall see.
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sapphire
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Post by sapphire on Oct 10, 2019 10:37:32 GMT
Some questions based on a quick look of the documents provided.
The proposal notes that this loan is 75% LTV "based on Ablrate Lenders' Amount". As the Ablrate Lenders Amount is 500K, this suggests a valuation of the underlying security as £666.6K. Whilst the proposal notes a GDV of the project as £4.785M, I cant seem to find any details or a Valuation Report for how the £666.6K amount used for the LTV calc has been arrived at. Have I missed something?
Also its not clear if this loan has a first charge on the security or a lower charge.
*Edit* Page 17 of the Borrowing proposal notes that the Ablrate loan ranks behind P******, so is effectively second charge.
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SteveT
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Post by SteveT on Oct 10, 2019 10:55:23 GMT
Strewth, this effectively is mezzanine finance for residential property development, ranking behind a primary lender (P****** Banking Group in this case) that is already lending £3.11m at 65% of GDV.
The substantial first-loss stake from the borrower implies a high degree of confidence in the project on their part but Ablrate lenders will be taking a leap of faith, with very little to call upon in terms of hard asset security if their planned developments go badly off the rails.
(Edit: first-loss stake not as substantial as it initially appeared, see later posts)
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criston
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Post by criston on Oct 10, 2019 10:57:26 GMT
Some questions based on a quick look of the documents provided. The proposal notes that this loan is 75% LTV "based on Ablrate Lenders' Amount". As the Ablrate Lenders Amount is 500K, this suggests a valuation of the underlying security as £666.6K. Whilst the proposal notes a GDV of the project as £4.785M, I cant seem to find any details or a Valuation Report for how the £666.6K amount used for the LTV calc has been arrived at. Have I missed something? Also its not clear if this loan has a first charge on the security or a lower charge. Yes, why can't it be understood in plain English
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pi
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Post by pi on Oct 10, 2019 10:59:59 GMT
As I understand it is a second charge loan. Am I correct?
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