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Post by mrclondon on Jan 24, 2014 9:57:24 GMT
Yes makes perfect sense.
However this developer is effectively a one man band and my concern is the developer's time could be spread too thinly to be effective. I know there is a limit to the number of projects I can manage concurently before all start to suffer.
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Post by andrewholgate on Jan 24, 2014 9:59:22 GMT
OK, I will ask the RM for more clarity on how he will manage these projects.
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Post by brummiefred on Jan 24, 2014 10:09:43 GMT
But the borrower is a developer not a building contractor. He has appointed an architect and a contractor and therefore has little involvement as the schemes progress other than finance and a light touch IMHO and a lifetime in the industry.
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Post by batchoy on Jan 24, 2014 10:14:47 GMT
With the Kidderminster offering it is the sheer number of SPVs not just on the devloper's part but also on that of the other Directors which have all been created in a very short period of time with little prior history in terms of previous business in this sector giving concern over both time and funds being spread too thinly.
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Post by andrewholgate on Jan 24, 2014 10:22:27 GMT
OK. I have asked for a better section on the history of the developer and why the switch to the SPV model.
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Jan 24, 2014 10:55:33 GMT
Sidetracking away from the Kiddie loan, I'm surprised the boiler man hasn't filled up at a faster pace. Bid a small amount myself & would have put more had I not been over-weighted from the t3 one in Dec. Any thoughts why?
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Post by batchoy on Jan 24, 2014 11:05:58 GMT
Sidetracking away from the Kiddie loan, I'm surprised the boiler man hasn't filled up at a faster pace. Bid a small amount myself & would have put more had I not been over-weighted from the t3 one in Dec. Any thoughts why? People may already have exposure to this company by way of the December T3 loan and don't want to increase it or they are waiting to see what happens today with the T2 loan
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Post by andrewholgate on Jan 24, 2014 11:13:46 GMT
The borrower has confirmed that he is repaying T2. I'm waiting for the payment to hit the account.
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bugs4me
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Post by bugs4me on Jan 24, 2014 11:25:18 GMT
Sidetracking away from the Kiddie loan, I'm surprised the boiler man hasn't filled up at a faster pace. Bid a small amount myself & would have put more had I not been over-weighted from the t3 one in Dec. Any thoughts why? Maybe it's the LTV that's having an effect plus the 10% - pure supposition on my part though.
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Post by chris on Jan 24, 2014 12:42:41 GMT
With the Kidderminster offering it is the sheer number of SPVs not just on the devloper's part but also on that of the other Directors which have all been created in a very short period of time with little prior history in terms of previous business in this sector giving concern over both time and funds being spread too thinly. It's also worth noting that we are more involved in the management of such property development deals than many of our competitors. For example the funds raised are never actually released to the developer but are paid directly to the contractors carrying out the work based on the achievement of set milestones. This protects lender funds and makes sure that even if the project falters and the developer defaults there should always be sufficient funds remaining in order to take the project through to completion - a much better situation than trying to sell a half finished project in order to try and recover lender's investments.
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Post by pepperpot on Jan 24, 2014 12:57:52 GMT
Sidetracking away from the Kiddie loan, I'm surprised the boiler man hasn't filled up at a faster pace. Bid a small amount myself & would have put more had I not been over-weighted from the t3 one in Dec. Any thoughts why? Maybe it's the LTV that's having an effect plus the 10% - pure supposition on my part though. Exactly my position, I'm happy with my exposure in t3 as it will take precedence over t4. All looks as though this company is going from strength to strength but as far as the security is concerned this is more like t2 that had a 20% annual rate.
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Jan 24, 2014 13:03:41 GMT
With the Kidderminster offering it is the sheer number of SPVs not just on the devloper's part but also on that of the other Directors which have all been created in a very short period of time with little prior history in terms of previous business in this sector giving concern over both time and funds being spread too thinly. It's also worth noting that we are more involved in the management of such property development deals than many of our competitors. For example the funds raised are never actually released to the developer but are paid directly to the contractors carrying out the work based on the achievement of set milestones. This protects lender funds and makes sure that even if the project falters and the developer defaults there should always be sufficient funds remaining in order to take the project through to completion - a much better situation than trying to sell a half finished project in order to try and recover lender's investments. - Now that's an interesting feature.
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Post by andrewholgate on Jan 24, 2014 13:15:25 GMT
It's also worth noting that we are more involved in the management of such property development deals than many of our competitors. For example the funds raised are never actually released to the developer but are paid directly to the contractors carrying out the work based on the achievement of set milestones. This protects lender funds and makes sure that even if the project falters and the developer defaults there should always be sufficient funds remaining in order to take the project through to completion - a much better situation than trying to sell a half finished project in order to try and recover lender's investments. - Now that's an interesting feature. - Prudence. That's what we do, not what I'm calling you.
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Jan 24, 2014 13:30:18 GMT
"Prudence. That's what we do, not what I'm calling you".
You'd better not, Sunshine, or I'll dream up a new application for an unripe u-no-wot!!  
Edit: Do you want to borrow one to encourage certain prospective borrowers?
Edit: On third thoughts I wouldn't want it back! 
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Post by batchoy on Jan 24, 2014 14:11:35 GMT
With the Kidderminster offering it is the sheer number of SPVs not just on the devloper's part but also on that of the other Directors which have all been created in a very short period of time with little prior history in terms of previous business in this sector giving concern over both time and funds being spread too thinly. It's also worth noting that we are more involved in the management of such property development deals than many of our competitors. For example the funds raised are never actually released to the developer but are paid directly to the contractors carrying out the work based on the achievement of set milestones. This protects lender funds and makes sure that even if the project falters and the developer defaults there should always be sufficient funds remaining in order to take the project through to completion - a much better situation than trying to sell a half finished project in order to try and recover lender's investments. However in this instance the funds form AC are identified in the credit report as "Loan is to facilitate purchase of two adjacent office blocks in Kidderminster for £ nnnk." i.e. the funds are being issued upfront and already committed in the property before the development starts. Had it been the other way round i.e. the developer is buying the property and the AC loan is funding the development and as you suggest then I would have been more comfortable.
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