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Post by alexp2p on Jul 21, 2020 12:20:37 GMT
Any opinions on the new loan A***** R**** ?
Tenant stability could be fragile and further weakening.
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Post by uksoul on Jul 21, 2020 12:57:46 GMT
Any opinions on the new loan A***** R**** ? Tenant stability could be fragile and further weakening. There is guaranteed rent for 12 months.
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p2pfan
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Post by p2pfan on Jul 21, 2020 14:42:33 GMT
Amusing to see that the Valuation report has "High Street location" in both the Strengths and Weaknesses columns.
The document refers to the rent having been halved until 30 September 2020, and one wonders if the tenant will expect a continuation of that if trading is weak as is likely. That might lead to defaults on interest payments to Proplend lenders.
I've generally stayed away from high street retailers and am therefore umming and ahhing about this one. Might go in for a tiny amount, but no more as the Valuation Report mentions several points of potential concern.
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p2pfan
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Post by p2pfan on Jul 21, 2020 14:46:32 GMT
Hmmm... just Googled the tenant's name. Look up the article on 10 June 2020 on Sky News about them and the severe challenges they're facing. It even refers to the fact that they will "hold talks with landlords".
I'm out.
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eeyore
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Post by eeyore on Jul 21, 2020 15:50:00 GMT
Proplend state in the loan request document that the tenure is "Virtual Freehold". Have Proplend used this description before? The valuation clearly states the property's tenure is 999 year leasehold, so why resort to such nebulous/meaningless terminology?
The market value is given as the same as the purported purchase price; the valuer declined giving a market value on a 90-day sale. In fact, the valuation admits giving a market value was problematic with the uncertainty in retail property rents. With the market values for tenanted and vacant possession being the same, is that saying that the valuer assigns no value to the current tenant's lease?
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nick
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Post by nick on Jul 21, 2020 18:28:28 GMT
Hmmm... just Googled the tenant's name. Look up the article on 10 June 2020 on Sky News about them and the severe challenges they're facing. It even refers to the fact that they will "hold talks with landlords". I'm out. Obviously high street retail real estate is a complete basket case. The positive is it has been reported that the tenant has already secured a debt for equity restructuring under which the private equity owners relinquish control to lenders (reported distressed debt funds) so lower risk that the tenant folds, although I'm sure they will look to renegotiate rents in common with most retailers.
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