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Post by chielamangus on Apr 22, 2016 10:03:21 GMT
The upcoming student housing in Newcastle under Lyme has uncanny resemblances to the H********** Q*** loan - same borrower, same value, same need for a subsidised curtain from China (South Wales steelworkers eat your heart out). But there is a difference. Somehow the student housing ground floor of 1100 sq meters is to be squeezed onto a site of just 200 sq meters. And the valuers also seem to think one hectare = one acre. Yet a few thousand investors will be putting their faith in all those other numbers which are beyond scrutiny for most of us.
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Post by trilby on Apr 22, 2016 10:17:05 GMT
Yes, none of that inspires much confidence - presumably the real area is neither 0.02 hectares nor 0.02 acres unless the building is going to be shaped like a police call box. I'm no surveyor but two minutes with an area calculation tool based on Google Maps shows that 0.2 hectares would be a more realistic ballpark figure.
Also page 11 contains the statement "We are of the opinion that the Market Value of the freehold interest in the Subject Property is in the region of £2,650,000" while page 12 contains the statement "We are of the opinion that the Market Value of the freehold interest in the Subject Property is in the region of: £2,000,000". I guess that one or the other of those statements are meant to be qualified in some way.
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ilmoro
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'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 22, 2016 14:15:35 GMT
Yes, none of that inspires much confidence - presumably the real area is neither 0.02 hectares nor 0.02 acres unless the building is going to be shaped like a police call box. I'm no surveyor but two minutes with an area calculation tool based on Google Maps shows that 0.2 hectares would be a more realistic ballpark figure. Also page 11 contains the statement "We are of the opinion that the Market Value of the freehold interest in the Subject Property is in the region of £2,650,000" while page 12 contains the statement "We are of the opinion that the Market Value of the freehold interest in the Subject Property is in the region of: £2,000,000". I guess that one or the other of those statements are meant to be qualified in some way. Theyve missed off the 90day restricted sale qualification. Figures are previously stated near the beginning of the valuation. Poor proofreading which seems to be a fairly common occurence these days.
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ben
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Post by ben on Apr 22, 2016 14:44:33 GMT
Its amazing how poor some of these documents are with little mistakes does nobody bother proof reading them , considering they are meant to be professionals to make mistakes on the main figures is pretty poor
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Apr 22, 2016 15:02:19 GMT
Its amazing how poor some of these documents are with little mistakes does nobody bother proof reading them , considering they are meant to be professionals to make mistakes on the main figures is pretty poor Lots of copying and pasting going on, followed by very little proof-reading. Most of the valuation documents I have read have minor mistakes, but some have larger mistakes; the worst cases includes conflicting market valuations. There are also cases of bad (lazy?) site surveying. For example, the new build in Surry (PBL81) valuation indicates the property is in a flood risk area, but some members local knowledge and a quick search online show that the property has little to no risk of flooding.
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zoll
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Post by zoll on Apr 22, 2016 15:39:28 GMT
Has anybody else noticed that on the DFL - Student accommodation block B, Huddersfield - pipeline loan- the loan amount is 6.8 mill while assessors valuation is only 5.1 mill as of 6th March. The LTV stated is 39% ? (According to my math its more like 133%). Any insights ? (I am aware that the 39% is calculated in relation to the gross development value of 17.4 mil. - but how can this tranche be more than the current value ?) After the above post from a few days ago I queried this issue with SS- below the email thread with clarifications. Apr 22, 13:47 Hi This is correct yes. Kind regards, Customer Services Team Saving Stream Saving Stream t: +44 (0) 800 779 7706 t: +44 (0) 203 303 3146 <mod deleted email address> w: www.savingstream.co.ukTrustPilot Reviews Apr 21, 07:39 Thanks Tim, So just to clarify, - I understand that in effect this loan is not going to go live for funding of the full sum (6.8 mill) - but rather in smaller tranches of up to 39% LTV of the latest available valuation each time, and investors will have the opportunity to invest in all or some of the tranches at their discretion as they become available ? Thanks, Apr 20, 12:58 Tim Tim (Saving Stream) Apr 20, 12:01 Hi When this loan goes live we will only release tranches at a max 39% LTV of the value, so on day 1 where val is £5.5m we would only open up £2.15m of available funding on the platform. Then when project has increased in value we publish new valuation and release further tranches. Kind regards, Customer Services Team Saving Stream Saving Stream t: +44 (0) 800 779 7706 t: +44 (0) 203 303 3146 <mod deleted email address> w: www.savingstream.co.ukTrustPilot Reviews Apr 20, 09:43 DFL - Student accommodation block B, Huddersfield Hi, Trying to understand how a 6.8 mil loan being raised against an asset valued at 5.5 mil is a 39% LTV. I understand that this is a DFL but surely each tranche should be raised separately and drawn down against an updated valuation ? Thanks. Copyright © 2016 Saving Stream, All rights reserved. Saving Stream is a trading name of Lendy Ltd, Registered in England & Wales. Registered office is Branksmere House, Queens Crescent, Southsea, Portsmouth, PO5 3HT(Company No. 8244913). Lendy Ltd is registered with the Office of the Information Commissioner, Reg no. Z3404040; and is regulated by the Financial Conduct Authority (FCA) #622666. This email is a service from Saving Stream. Delivered by Zendesk
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parisingoc
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Post by parisingoc on Apr 22, 2016 21:55:07 GMT
Sticking with the Student Accomodation Block B, the details on SS suggest it is the only equivalent accommodation in the town centre and for c.8.1 miles away.
I live locally and rent properties to students in the town and believe the blurb has to be carefully studied in its use of the language.
Several hundred (> 1 or possibly even 2 thousand) student rooms have been built very close to the University in the last 5 years.
The pipeline block may well be the only block, consisting totally of self-contained studio flats with en-suite facilites, etc, etc, but a few more hundred new rooms were finished just last year and another, smaller, block is being got ready for occupation in September. All the blocks are, literally, across the road from the University, whereas the SS offering is about half a mile away round the Ring Road.
Now, I am not saying these other flats close to the University are self-contained studio flats with en-suite, etc, etc. What I am saying is take the words at face value and do your own DD.
FWIW, I will be investing in this when it comes up.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Apr 22, 2016 22:06:01 GMT
Sticking with the Student Accomodation Block B, the details on SS suggest it is the only equivalent accommodation in the town centre and for c.8.1 miles away. I live locally and rent properties to students in the town and believe the blurb has to be carefully studied in its use of the language. Several hundred (> 1 or possibly even 2 thousand) student rooms have been built very close to the University in the last 5 years. The pipeline block may well be the only block, consisting totally of self-contained studio flats with en-suite facilites, etc, etc, but a few more hundred new rooms were finished just last year and another, smaller, block is being got ready for occupation in September. All the blocks are, literally, across the road from the University, whereas the SS offering is about half a mile away round the Ring Road. Now, I am not saying these other flats close to the University are self-contained studio flats with en-suite, etc, etc. What I am saying is take the words at face value and do your own DD. FWIW, I will be investing in this when it comes up. Thanks ; Local knowledge is always appreciated, so thanks for the heads up  There seems to be no mention of this in the valuation report (which is where SS usually copy and paste the info for the overview pages). I can only assume that SS have taken this info from statistics provided by the developer....
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Apr 25, 2016 11:28:14 GMT
DFL - Student accommodation is now at stage 2...
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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 25, 2016 13:23:34 GMT
DFL - Student accommodation is now at stage 2... Would have thought this would be pretty close to being good to go, stage 3 should be a formality as they already have that info for PBL25. Does raise the question though in the light of the replies to zoll emails what is happening with the PBL25 as the stated initial tranche in those emails wont cover the repayment of the existing loan. Funds from Block C maybe which PBL25 was actually funding?
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SteveT
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Post by SteveT on Apr 25, 2016 13:29:41 GMT
The Isle of Wight launches tomorrow  |
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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 25, 2016 13:43:49 GMT
The Isle of Wight launches tomorrow No sign of the promised up to date valuation yet, particularly as the current valuation was addressed to a seemingly unrelated third party.
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Post by savingstream on Apr 25, 2016 15:03:25 GMT
The Isle of Wight launches tomorrow No sign of the promised up to date valuation yet, particularly as the current valuation was addressed to a seemingly unrelated third party. We have said that it will be updated before drawdown of the funds. Drawdown is the stage whereby the funds are sent to the borrower, not sought from SS investors which is termed "Going Live". Valuation Update - currently being rewritten by JLL for us.
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mikes1531
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Post by mikes1531 on Apr 25, 2016 15:41:41 GMT
No sign of the promised up to date valuation yet, particularly as the current valuation was addressed to a seemingly unrelated third party. We have said that it will be updated before drawdown of the funds. Drawdown is the stage whereby the funds are sent to the borrower, not sought from SS investors which is termed "Going Live". Valuation Update - currently being rewritten by JLL for us. : So we investors are being asked to commit to a loan before we get to see the valuation? Doesn't seem appropriate, somehow. I suppose it's OK as long as the SM is liquid enough to allow us to invest first and then exit quickly if the valuation isn't to our taste, but if the valuation isn't good and a lot of people want to get out at the same time...
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SteveT
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Post by SteveT on Apr 25, 2016 15:50:50 GMT
Valuation Update - currently being rewritten by JLL for us. : So we investors are being asked to commit to a loan before we get to see the valuation? Doesn't seem appropriate, somehow. I suppose it's OK as long as the SM is liquid enough to allow us to invest first and then exit quickly if the valuation isn't to our taste, but if the valuation isn't good and a lot of people want to get out at the same time... It's the same valuer so I doubt they're going to change their assessment of market value much in just 6 months. I can see the IoW out of my window and it looks very much the same as it did last October
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