cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Apr 20, 2016 20:04:27 GMT
This Loan is currently LIVE
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| @ Tranche 1
(Current)
| @ Tranche 2
(Current)
| | Loan Amount | : | £ 2,590,000
| £ 3,780,000
| | Security Value | : | £ 3,700,000
| £5,400,000
| | SS Indicated LTV | : | 70 % | 70 % | | 90 Day Market Value | : | Unknown
| £ 3,780,000
| 90 Day Market LTV
| : | Unknown
| 88 %
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PLEASE NOTE : This post (and all my DD posts) are no longer being updated by myself (besides the basic loan status)
Observations from the valuation report & other remarks
> This loan is connected to 2 previous SS loans; PBL059 & PBL072 (different companies but connected by a common director) > The security is only valued at 5.4m when planning permission (to change the premises from office to residential) has been approved. This planning permission has yet to be approved and as such the security is only valued at £3,700,000 (as indicated in "Valuer's side letter"). As such SS have split this loan into 2 stages; > STAGE 1 - SS will lend £2.59m against a current valuation while planning permission is pending, which at stage 1 would provide an LTV of 70% > STAGE 2 - Once planning is granted for the 115 unit development, the value of the building will increase to £5.4m and SS will release additional funds up to a total of £3.78m or a max of 70% of the post PP valuation.
> The site currently has "Prior Approval" PP (not full PP) given on 16-12-2015. This seems to be an indication that full PP is a formality. Planning has now been granted for the 115 unit development. > Exit Strategy Over the course of c8-10 weeks, the borrower will exchange on all of the units, and receive 25% deposits totalling c£4.5m which they will use to fund the development. Upon completion of the build, they will then receive the additional £13.5m in sales proceeds with which to repay our loan of £3.78m. Update
> Planning has now been granted for the 115 unit development, the value of the building has increased from £3.7m to £5.4m and thus SS are seeking to release additional funds up to a total of £3.78m or 70% LTV. As such Tranche 2 has appeared on the pipeline.
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| Tranche 1 | Tranche 2
| | Code Number Assigned | : | 20/04/2016 | 28/07/2016 | | Loan went live @ | : | 21/04/2016 | 30/07/2016 | | Allocation | : | 59.2% | 100%
| | No. of investers @ live time | : | 1565 | 500 (estimate) |
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star dust
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Post by star dust on Apr 20, 2016 20:16:05 GMT
Email received, another go-live tomorrow. Thursday (21/04/2016). Busy day, good time for any newbies wanting to buy on the SM I suspect.
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SteveT
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Post by SteveT on Apr 20, 2016 20:40:21 GMT
Which is why the initial loan advance is only for £2.59m
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markdirac
Member of DD Central
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Post by markdirac on Apr 20, 2016 20:48:06 GMT
But it is not even unambiguously certain that there is planning permission for the first phase of the development, which is now underway. Excuse from the valuer:
Liverpool City Council will no longer accept verbal planning enquiries with all enquiries required to
be made in writing. Due to the time constraints composed upon us in providing our report this has
not been possible. We have therefore assumed, for the purpose of the valuation, that the Subject Property has the
necessary planning consent for its existing use. No formal search has been instigated ...
and then goes on to say that, regarding the existing development:
Prior Approval Given 16-12-2015.
What does "Prior" mean? Is approval granted or not?
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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 20, 2016 21:15:18 GMT
AIUI There is government legislation that allows change of use of commercial offices into residential - Permitted Development Rights - without a planning application (phase 1) They then need planning permission to remodel the ground floor/basement & build the extension. Prior approval means their were certain aspects of phase 1 that had to be referred to the planning authority but have been OKd planningguidance.communities.gov.uk/blog/guidance/when-is-permission-required/what-are-permitted-development-rights/PS Anyone have the feeling that SS have been waiting for the Dude's return before launching these  |
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mikes1531
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Post by mikes1531 on Apr 20, 2016 21:16:44 GMT
So this has yet to receive planning permission? So at the moment, the value of the security is £3,700,000 (according to the Valuer's side letter)..... That's the way I interpret it. But in the loan description part of the Overview it says that Stage 1 (April) would involve only a £2.59M loan before PP is obtained, and that's 70% of the £3.7M current value, so that sounds reasonable to me. But that also suggests that the oversubscription via pre-funding might be larger -- and the allocation factor lower -- than it would be if they were trying to fund the full £3.78M tomorrow. What I can't guess at is the impact of bringing two loans forward at the same time. Taken together, they're trying to fund £4.34M on one day. Will investors be willing to invest heavily in both, because they're separate projects? Or will they limit their pre-funding for both together because their resources available on a given day are limited? Or will they limit their pre-funding for both together because both of tomorrow's projects are in Liverpool and that increases the risk? Or will they increase their pre-funding for both because it's been three weeks since the last >£1M new loan and it may be a while before the next large opportunity goes live? (We don't know how big Huddersfield might turn out to be, because most of the necessary funds might be rolled forward from PBL025, and we're still waiting for a new Hull valuation. The only other large candidate is the Sky loan, which is at Stage 2, so it might be ready to go live before long.) Will this be another case like PBL77-80, where people watch the allocation factor for the first one to be released and then scramble to adjust their pre-funding for the second one before it gets allocated? In short, any outcome looks possible. And SS probably are reading this thread and having a nice chuckle!
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markdirac
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Post by markdirac on Apr 20, 2016 21:28:52 GMT
Are they separate projects? Co-incidences are unavoidable: - same day - same valuer - same solicitors - same term - same city - same part of city - same purpose (ish - block of flats, scraping bottom of barrel here)
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Apr 20, 2016 21:32:04 GMT
Are they separate projects? Co-incidences are unavoidable: - same day - same valuer - same solicitors - same term - same city - same part of city - same purpose (ish - block of flats, scraping bottom of barrel here) I thought the same, but I have dug into the details and can't see no connections. One borrower is a hotel group (although this seems to be a shift of business), the other is prominently in the residential apartment/student accommodation and care home sector.
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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 20, 2016 21:33:58 GMT
Another factor is that the borrower already has two loans PBL59/72 so lenders may want to limit exposure or switch exposure in some way
Not the same borrower as PBL92 IMO, who is the same borrower as Newcastle under Lyme
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ben
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Post by ben on Apr 20, 2016 22:03:13 GMT
Another factor is that the borrower already has two loans PBL59/72 so lenders may want to limit exposure or switch exposure in some way Not the same borrower as PBL92 IMO, who is the same borrower as Newcastle under Lyme I think 59/72 have stated that they are repaying at least part in the near future
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davex
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Post by davex on Apr 20, 2016 23:30:17 GMT
Are they separate projects? Co-incidences are unavoidable: - same part of city - same purpose (ish - block of flats, scraping bottom of barrel here) Not really same part of city, Old Hall Street is slap bang in the middle of the business area, quite a way from PBL92. I nearly bought a flat in PBL92 several years ago, instead I got one in Old Hall Street. Now I'll invest in 92 via SS, funny old world.
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adrianc
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Post by adrianc on Apr 21, 2016 16:19:17 GMT
It IS happening today - my balance is down far more than just 92 would suggest (but I've not figured out how much), and it's showing as almost fully invested, with £2294 to go.
And there it is in Live - my slice is a bit under 50% of prefund, I think.
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mikeh
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Post by mikeh on Apr 21, 2016 17:38:24 GMT
Asked £2000, Got £1184.00, 59.2% Agreed. 355/600 = 59.2%
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jul 12, 2016 10:43:41 GMT
A new update has appeared...  |
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locutus
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Post by locutus on Jul 12, 2016 10:50:32 GMT
A new update has appeared... I think this is fine. They already have planning for 52 units and the planning permission in the update relates to an additional 63 units. Once that is granted, they will release a 2nd tranche of the loan. It was supposed to happen in May but these things are often delayed.
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