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Post by Ace on Apr 20, 2021 12:25:46 GMT
This new development loan opportunity offers 6% pa paid monthly plus 5% pa rolled up and paid at completion for an expected term of 30 months.
I've done fairly well from past Uown investments, but I can't figure out exactly where Uown lenders would sit within the capital stack on this one (other than it being part of a first charge security). I've written to them asking for more info. Would appreciate other's thoughts.
EDIT: I was mistaken in believing that this would necessarily remain as a first charge security. See my post below for details.
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qwakuk
Member of DD Central
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Post by qwakuk on Apr 20, 2021 12:53:26 GMT
This new development loan opportunity offers 6% pa paid monthly plus 5% pa rolled up and paid at completion for an expected term of 30 months. I've done fairly well from past Uown investments, but I can't figure out exactly where Uown lenders would sit within the capital stack on this one (other than it being part of a first charge security). I've written to them asking for more info. Would appreciate other's thoughts. Not had a chance to look at in detail, appreciate if you would share their response
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Ukmikk
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Post by Ukmikk on Apr 20, 2021 18:02:59 GMT
I'm not a previous uo investor, but registered and hence received details of this. I was concerned/put off by the fact that uo are half owned by the developer, so all a bit cozy. Any opinions on that either way?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Apr 20, 2021 18:56:21 GMT
clause 6.4 in the funding agreement looks concerning.
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Post by Ace on Apr 21, 2021 13:31:58 GMT
This new development loan opportunity offers 6% pa paid monthly plus 5% pa rolled up and paid at completion for an expected term of 30 months. I've done fairly well from past Uown investments, but I can't figure out exactly where Uown lenders would sit within the capital stack on this one (other than it being part of a first charge security). I've written to them asking for more info. Would appreciate other's thoughts. Not had a chance to look at in detail, appreciate if you would share their response Here's my understanding of the answers to the points I raised during an exchange with Uown: - The expected LTGDV is 65%.
- The maximum possible LTGDV is 75%.
- UOWN will initially be taking a first charge security over the asset. This may become a second charge further down the line if a larger piece of finance is secured from a traditional lender for the bulk of the build costs.
- Future Uown tranches will rank equally (pari passu) with the first Uown tranche. (A second tranche of £250k is already planned at a slightly lower rate as described in the brochure).
- Returns for the first tranche will start to accrue when funding completes or 1st May 2021 (whichever is soonest).
Assuming that the loan runs for exactly 30 months, and taking into account the repayment profile and platform fee, I calculate the XIRR for this first tranche to be 9.96%.
I found Uown to be very responsive to my questions via the Contact Us page on their website, and to my subsequent questions and clarifications.
FWIW, I have invested my usual Uown stake in this project.
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Post by Ace on Apr 21, 2021 13:58:17 GMT
I'm not a previous uo investor, but registered and hence received details of this. I was concerned/put off by the fact that uo are half owned by the developer, so all a bit cozy. Any opinions on that either way? From a purely amateur investor's viewpoint I saw this as a positive, akin to the platform having skin in the game. On previous investments it has been an advantage in that Parklane had effectively underwritten the deals, allowing returns to be paid from the point of investment rather than having to wait for the loans to fully fund. Some previous Uown deals took a very long time to fill, so this was a considerable advantage. Doesn't look to be an issue on this one though as it is filling much more quickly that others have.
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Post by Ace on Apr 21, 2021 14:05:36 GMT
clause 6.4 in the funding agreement looks concerning. Agreed. I have to confess to having to hold my nose when reading that. It might well have been the straw that broke the camel's back if I hadn't already had successful investments with Uown. I have to do the same when swallowing the 2% upfront platform fee.
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Post by Ace on Apr 22, 2021 15:30:24 GMT
Tranche 1 has sold out.
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qwakuk
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Post by qwakuk on Apr 22, 2021 15:34:26 GMT
There was over £50k available when I added my small chunk this morning
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djpix99
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Post by djpix99 on Dec 2, 2021 16:38:27 GMT
I've been looking at investing in Tranche 4 (I know, a little late to the party).
In peoples opinions would the monthly returns be taxed as interest, capital gains or income?
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Post by Ace on Dec 2, 2021 17:13:06 GMT
I've been looking at investing in Tranche 4 (I know, a little late to the party). In peoples opinions would the monthly returns be taxed as interest, capital gains or income? The monthly returns from earlier tranches of this investment are labelled as "dividends" on my tax certificate.
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djpix99
Member of DD Central
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Post by djpix99 on Dec 2, 2021 17:27:26 GMT
Thanks Ace I had a feeling that may be the case looking at some of my previous investments in Uown. |
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squid
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Post by squid on Dec 8, 2021 15:57:04 GMT
I checked with Uown a while ago, and they confirmed income for this investment is interest, not a dividend (despite what may be shown on the monthly statements).
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Post by Ace on Dec 8, 2021 17:36:43 GMT
I checked with Uown a while ago, and they confirmed income for this investment is interest, not a dividend (despite what may be shown on the monthly statements). If true this is a serious error as its listed as a dividend on the tax statements.
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squid
Member of DD Central
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Post by squid on Dec 9, 2021 10:02:56 GMT
Agreed.
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