guff
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Post by guff on Dec 13, 2016 10:37:36 GMT
[rhetirical]What have these luxury apartments got to do with student accommodation?[/rhetirical]
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Jeepers
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Post by Jeepers on Dec 17, 2016 21:19:35 GMT
Judging by the last update, would it be reasonable to expect this loan to be repaid early in about 6 weeks?
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r00lish67
Member of DD Central
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Post by r00lish67 on Dec 29, 2016 11:24:27 GMT
I know that a) at least it's good we can see tangible progress being made and that b) I'm probably rapidly garnering a reputation as being an SS poo-pooer, but.. the last meaningful SS update reads:
"Works are progressing well with Practical Completion due by the end of January/ start of February".
Marrying this up with the loan description when we started out in March:
"95 units sold and exchanged with deposits received at c£65k per unit, expected to be completely sold out by June 2016"
"We will provide a short term bridge against the current value to expedite the build and get to practical completion for September 2016"
So, actually, we're currently running 6-7 months behind on the units being sold and about 4 months behind on the build being finished. I'm not saying this makes the loan a bad loan, and I'm not saying the progress is unacceptable as delays happen. I am saying that this is not my definition of good progress against a plan. I am saying that one would presume that this project also isn't on budget given the overrun, although that info isn't shared with us.
I'm also curious as to why the units didn't completely sell out in June 2016 as we were advised they would. This is another example of an SS upbeat comment not working out, and then not being explained.
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fp
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Post by fp on Dec 29, 2016 11:54:07 GMT
I know that a) at least it's good we can see tangible progress being made and that b) I'm probably rapidly garnering a reputation as being an SS poo-pooer, but.. the last meaningful SS update reads: "Works are progressing well with Practical Completion due by the end of January/ start of February". Marrying this up with the loan description when we started out in March: "95 units sold and exchanged with deposits received at c£65k per unit, expected to be completely sold out by June 2016" "We will provide a short term bridge against the current value to expedite the build and get to practical completion for September 2016" So, actually, we're currently running 6-7 months behind on the units being sold and about 4 months behind on the build being finished. I'm not saying this makes the loan a bad loan, and I'm not saying the progress is unacceptable as delays happen. I am saying that this is not my definition of good progress against a plan. I am saying that one would presume that this project also isn't on budget given the overrun, although that info isn't shared with us. I'm also curious as to why the units didn't completely sell out in June 2016 as we were advised they would. This is another example of an SS upbeat comment not working out, and then not being explained.Wishful thinking on behalf of the developer is most likely.
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am
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Post by am on Dec 29, 2016 13:06:58 GMT
I know that a) at least it's good we can see tangible progress being made and that b) I'm probably rapidly garnering a reputation as being an SS poo-pooer, but.. the last meaningful SS update reads: "Works are progressing well with Practical Completion due by the end of January/ start of February". Marrying this up with the loan description when we started out in March: "95 units sold and exchanged with deposits received at c£65k per unit, expected to be completely sold out by June 2016" "We will provide a short term bridge against the current value to expedite the build and get to practical completion for September 2016" So, actually, we're currently running 6-7 months behind on the units being sold and about 4 months behind on the build being finished. I'm not saying this makes the loan a bad loan, and I'm not saying the progress is unacceptable as delays happen. I am saying that this is not my definition of good progress against a plan. I am saying that one would presume that this project also isn't on budget given the overrun, although that info isn't shared with us. I'm also curious as to why the units didn't completely sell out in June 2016 as we were advised they would. This is another example of an SS upbeat comment not working out, and then not being explained. Those statements are sufficient to conclude that development is 4 months behind, but other than silence on the issue from savingstream do you have any reason to infer that pre-sales didn't complete by June 2016, or at some point in the subsequent 6 months?
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Post by d_saver on Dec 29, 2016 13:24:24 GMT
I think, looking at the developers website quickly before (will do a more thorough check later) that the units were all listed as sold as the only ones they have coming up/open to investment are due for completion in 2018.
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Liz
Member of DD Central
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Post by Liz on Dec 29, 2016 13:41:51 GMT
I know that a) at least it's good we can see tangible progress being made and that b) I'm probably rapidly garnering a reputation as being an SS poo-pooer, but.. the last meaningful SS update reads: "Works are progressing well with Practical Completion due by the end of January/ start of February". Marrying this up with the loan description when we started out in March: "95 units sold and exchanged with deposits received at c£65k per unit, expected to be completely sold out by June 2016" "We will provide a short term bridge against the current value to expedite the build and get to practical completion for September 2016" So, actually, we're currently running 6-7 months behind on the units being sold and about 4 months behind on the build being finished. I'm not saying this makes the loan a bad loan, and I'm not saying the progress is unacceptable as delays happen. I am saying that this is not my definition of good progress against a plan. I am saying that one would presume that this project also isn't on budget given the overrun, although that info isn't shared with us. I'm also curious as to why the units didn't completely sell out in June 2016 as we were advised they would. This is another example of an SS upbeat comment not working out, and then not being explained.Wishful thinking on behalf of the developer is most likely. Brexit 
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r00lish67
Member of DD Central
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Post by r00lish67 on Dec 29, 2016 16:10:10 GMT
I know that a) at least it's good we can see tangible progress being made and that b) I'm probably rapidly garnering a reputation as being an SS poo-pooer, but.. the last meaningful SS update reads: "Works are progressing well with Practical Completion due by the end of January/ start of February". Marrying this up with the loan description when we started out in March: "95 units sold and exchanged with deposits received at c£65k per unit, expected to be completely sold out by June 2016" "We will provide a short term bridge against the current value to expedite the build and get to practical completion for September 2016" So, actually, we're currently running 6-7 months behind on the units being sold and about 4 months behind on the build being finished. I'm not saying this makes the loan a bad loan, and I'm not saying the progress is unacceptable as delays happen. I am saying that this is not my definition of good progress against a plan. I am saying that one would presume that this project also isn't on budget given the overrun, although that info isn't shared with us. I'm also curious as to why the units didn't completely sell out in June 2016 as we were advised they would. This is another example of an SS upbeat comment not working out, and then not being explained. Those statements are sufficient to conclude that development is 4 months behind, but other than silence on the issue from savingstream do you have any reason to infer that pre-sales didn't complete by June 2016, or at some point in the subsequent 6 months? Sorry, I neglected to include the second part of SS's November 25th update which said "Borrower had advised that he has a buyer for the remaining units within the Block and another buyer for the freehold of the site", and the 23rd Dec update said "no change". That's why I assume pre-sales didn't complete in June.
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mikes1531
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Post by mikes1531 on Jan 7, 2017 15:51:01 GMT
How much demand is there for student accommodation once the academic year starts? When it was thought that the place would be ready for September it seemed reasonable that the units would be bought a few months before then, in June. Once the completion date slipped beyond the beginning of the student year it wouldn't surprise me if demand for purchases would take a significant hit and drop off.
If it really is finished in Jan/Feb, how many units are likely to be occupied before the end of the summer? Are people happy to make investments knowing that there would be minimal income for the fist six months or so?
These are little more than random thoughts/questions. I haven't a clue about possible answers.
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Post by nomnom on Jan 8, 2017 23:24:26 GMT
How much demand is there for student accommodation once the academic year starts? When it was thought that the place would be ready for September it seemed reasonable that the units would be bought a few months before then, in June. Once the completion date slipped beyond the beginning of the student year it wouldn't surprise me if demand for purchases would take a significant hit and drop off. If it really is finished in Jan/Feb, how many units are likely to be occupied before the end of the summer? Are people happy to make investments knowing that there would be minimal income for the fist six months or so? These are little more than random thoughts/questions. I haven't a clue about possible answers. The sales contract for Block C includes a 5 year lease back where the purchaser receives a guaranteed income from the developer. This allows a bedding in period for the the building to become fully occupied.
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mikes1531
Member of DD Central
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Post by mikes1531 on Jan 9, 2017 3:54:13 GMT
The sales contract for Block C includes a 5 year lease back where the purchaser receives a guaranteed income from the developer. This allows a bedding in period for the the building to become fully occupied. : Thanks for that. When does the 5-year period start? At the time of the investor's deposit? Or at the time of sale completion? Or when the building gets certified as being habitable? Or...?
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fp
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Post by fp on Jan 9, 2017 10:32:26 GMT
Most accommodation of this type is sold with "guaranteed returns" for a 5 year period, once this 5 year period has expired, the units are worth considerably less than the original purchase price, meaning the returns have actually been a lot less.
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Post by nomnom on Jan 9, 2017 11:45:28 GMT
Most accommodation of this type is sold with "guaranteed returns" for a 5 year period, once this 5 year period has expired, the units are worth considerably less than the original purchase price, meaning the returns have actually been a lot less. At the time of sale completion
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Mar 30, 2017 21:13:52 GMT
Just Repaid
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GeorgeT
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Post by GeorgeT on Mar 30, 2017 21:29:24 GMT
I try not to give you a like because your likes to posts ratio is 1.30 and mine is only 1.28  , but thanks for brightening my evening with some welcome good news.
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, but thanks for brightening my evening with some welcome good news.