Post by eeyore on Jan 24, 2024 12:11:10 GMT
New 24-month commercial term loan for Nottingham R*** Refinance has been announced.
Total loan: £2,077,000 LTV: 62%
Tranche A: £1,675k @ 8.63% gross
Tranche B: £402k @ 10.02% gross
The purpose of the loan is refinance the existing loan at Proplend, Nottingham R***, see the discussion here: p2pindependentforum.com/thread/18063/nottingham-pll0958
The security is a long lease on part of a 1970s shopping arcade with two high-street tenants as in the original loan. Since 2020, one of the tenants went into administration and was taken-over but still trades with the same branding.
The original plan to apply for planning permission to add three more floors to convert them and the first floor to student accommodation was successful, subject to completion of a Section 106 agreement and negotiation with the tenant on the first floor to terminate their lease.
The exit strategy is now to sell the property as a whole or as separate units.
See the full loan request and valuation report for details which are available on the website.
Comment: the new loan is smaller than the original (£2.077M down from £2.257M) presumably because the borrower has injected further funds, but with a reduced market valuation, the LTV has increased from 61% to 62%. The rental income has also dropped.
Allocation of TrancheA for Always-On lenders will take place on Thursday 25-Jan.
Tranches A & B will be available for Self-Select - funds for Self-Select lenders must be in their cash accounts by 17:00 on Friday 26-Jan.
Has roll-over been offered for the original loan?
Update: The loan has been drawn down.
Total loan: £2,077,000 LTV: 62%
Tranche A: £1,675k @ 8.63% gross
Tranche B: £402k @ 10.02% gross
The purpose of the loan is refinance the existing loan at Proplend, Nottingham R***, see the discussion here: p2pindependentforum.com/thread/18063/nottingham-pll0958
The security is a long lease on part of a 1970s shopping arcade with two high-street tenants as in the original loan. Since 2020, one of the tenants went into administration and was taken-over but still trades with the same branding.
The original plan to apply for planning permission to add three more floors to convert them and the first floor to student accommodation was successful, subject to completion of a Section 106 agreement and negotiation with the tenant on the first floor to terminate their lease.
The exit strategy is now to sell the property as a whole or as separate units.
See the full loan request and valuation report for details which are available on the website.
Comment: the new loan is smaller than the original (£2.077M down from £2.257M) presumably because the borrower has injected further funds, but with a reduced market valuation, the LTV has increased from 61% to 62%. The rental income has also dropped.
Allocation of TrancheA for Always-On lenders will take place on Thursday 25-Jan.
Tranches A & B will be available for Self-Select - funds for Self-Select lenders must be in their cash accounts by 17:00 on Friday 26-Jan.
Has roll-over been offered for the original loan?
Update: The loan has been drawn down.