eeyore
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Post by eeyore on Jun 10, 2021 15:53:22 GMT
New nine-month bridging loan for Birmingham L*** with O*** P*** (PLL0995) has been announced.
Total loan: £2,307,000 LTV: 63.2%
Tranche A: £1,825k @ 7.55% gross
Tranche B: £482k @ 9.7% gross
The loan's purpose is to refinance current debts. The loan is expected to be redeemed on the sale of the property for redevelopment.
The borrowers are the same as for this week's Birmingham R*** (PLL0994) loan.
The security is a first legal charge on land in central Birmingham currently used as a car park by staff and customers of the trading company which is the tenant of the premises in the Birmingham R*** loan. There is outline planning permission for a twelve-storey residential block on the land and the borrowers have accepted an offer from a developer; Proplend has seen an option agreement for the sale.
See the full loan request and valuation report for details which are available on the website.
Allocation of TrancheA funds for Always-On lenders has already taken place (Thursday 10-Jun).
Tranches A and B will be available for Self-Select: - funds for Self-Select lenders must be in their cash accounts by 17:30 on Friday 11-June.
This loan was repaid in full (with Penalty Interest) on 23-Dec-2022.
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p2pfan
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Post by p2pfan on Jun 10, 2021 21:01:52 GMT
Thanks for sharing.
I'm extremely hesitant to lend to this borrower, as their retail business is in administration and using the borrowed money from the two new loans on PL to come out of it.
With the fact that they're in administration, the state of high street retail in general and their need to borrow millions to bail themselves out, this seems a bit like playing roulette?
The retail business' last P/L statement, for the year ending 31 May 2019, doesn't show much of a profit for a business this size, and that will now decline with the growth of online shopping in the intervening years etc.?
Also the retained interest information is highly confusing. The information page on PL states that it is for six months, but the documentation states 15 months. Obviously the latter gives much more comfort.
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eeyore
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Post by eeyore on Jun 11, 2021 10:12:20 GMT
I'm glad that Proplend decided to make the minimum investment £2k on the Birmingham R*** loan which meant that Auto-Lend didn't force me to take a slice of that loan, but Auto-Lend did allocate £1k of this Birmingham L*** loan.
I too am hesitant about this borrower, but in my view it all depends on the viability of the property development schemes. My take is that the management buy-out, funded by loans from a high-street bank, was just an asset-stripping exercise, principally to buy the properties, run-down the trading business and sell the land to developers. It is claimed that offers have been made for both the Birmingham R*** and L*** properties in excess of the loans, so if all goes to plan, the loans will be redeemed and the borrowers will walk away with a profit. With the L*** project further advanced (outline planning permission and a option purchase agreement in place), I'm more confident about that loan, despite the higher LTV.
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Post by uksoul on Jun 14, 2021 17:40:25 GMT
Has anyone received confirmation of their loan bid for this loan?
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p2pfan
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Post by p2pfan on Jun 14, 2021 17:52:57 GMT
Has anyone received confirmation of their loan bid for this loan? No. This new PL 'autolend' system is a complete and utter farce. You have no idea where you are with loans. I much preferred the previous set-up. PL has become a pain-in-the-neck to use now.
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Post by uksoul on Jun 14, 2021 18:00:14 GMT
Has anyone received confirmation of their loan bid for this loan? No. This new PL 'autolend' system is a complete and utter farce. You have no idea where you are with loans. I much preferred the previous set-up. PL has become a pain-in-the-neck to use now. It's taken much longer than usual. Money had to be in accounts Friday, i was expecting confirmation this morning.
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Post by uksoul on Jun 15, 2021 10:21:49 GMT
Allocations will take place today and the drawdown should be soon after.
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brianlom1
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He's not the Messiah, he's a very naughty boy!
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Post by brianlom1 on Sept 30, 2022 9:40:58 GMT
Is this borrower taking the p**s?
This was meant to be a 9-month bridging loan to be redeemed in March.
Various reasons have been put forward to explain the subsequent delay but on 7th September we were informed 'The Borrower has confirmed the sale of the land to a developer is well advanced and the loan is expected to be fully repaid within the next 3 weeks' - ie by 28th September.
Then on 29th September we were told 'Whilst the judicial review was successfully completed, unfortunately there is now a delay with the buyers funding arrangements. All economics remain the same, and the positive is that the property has appreciated in value post the planning approval, but the long stop completion date is now set for 30 November. The loan continues to accrue at the penalty rate of interest, all of which will be paid upon redemption. We apologise for the continued delay, but this is something beyond the control of ourselves and our Borrower'.
It only needs one more delay and the extension period will end up exceeding the initial loan period.
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Post by overthehill on Sept 30, 2022 10:11:48 GMT
Is this borrower taking the p**s? This was meant to be a 9-month bridging loan to be redeemed in March. Various reasons have been put forward to explain the subsequent delay but on 7th September we were informed 'The Borrower has confirmed the sale of the land to a developer is well advanced and the loan is expected to be fully repaid within the next 3 weeks' - ie by 28th September. Then on 29th September we were told 'Whilst the judicial review was successfully completed, unfortunately there is now a delay with the buyers funding arrangements. All economics remain the same, and the positive is that the property has appreciated in value post the planning approval, but the long stop completion date is now set for 30 November. The loan continues to accrue at the penalty rate of interest, all of which will be paid upon redemption. We apologise for the continued delay, but this is something beyond the control of ourselves and our Borrower'. It only needs one more delay and the extension period will end up exceeding the initial loan period.
You're a tough gig! Most people will be rubbing their hands, penalty interest, increased valuation, I think this is the borrower who has repaid many loans. It is actually to do with valuations, inflation and interest rates, as mentioned last week this is going to be factor for the next while. So sell and buy wisely until the worst is over.
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morris
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Post by morris on Sept 30, 2022 14:14:52 GMT
Not to be confused as I was with Bath, which is also also a bridge and running late.
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brianlom1
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Post by brianlom1 on Sept 30, 2022 19:07:45 GMT
No disagreement on those points but this loan is long overdue so loan parts can't be sold on the PLE.
Based on Proplend's update of only 3 weeks ago, I'd pencilled-in this loan to fund my October SIPP drawdown - I now need to sell other loan parts which will incur a fee.
Maybe I've just had too many negative P2P experiences that start with 'repayment within 3 weeks', followed by 'there's been an unexpected delay', followed by ...?
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Post by overthehill on Sept 30, 2022 19:47:28 GMT
No disagreement on those points but this loan is long overdue so loan parts can't be sold on the PLE. Based on Proplend's update of only 3 weeks ago, I'd pencilled-in this loan to fund my October SIPP drawdown - I now need to sell other loan parts which will incur a fee. Maybe I've just had too many negative P2P experiences that start with 'repayment within 3 weeks', followed by 'there's been an unexpected delay', followed by ...?
If I had put all my P2P investments into Proplend 6 years ago and ignored the rest, I'd be very content right now.
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eeyore
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Post by eeyore on Dec 23, 2022 14:38:58 GMT
This loan has been paid back in full today.
Penalty interest for 280 days of £29.36 per £1,000 TrancheA, together with an Late Redemption Exit Charge of £5 have been paid.
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