PBL93 - LP Office 2 Resid. - LIVE

Do SS have any more to release ?

Yes; if you have a look at Lendy Ltd on CH, neither Director (Tim or Liam) links to the other companies they are involved with.  It makes DD hard sometimes... for example, the ex-directors of the garden centre set up a new company just after the loan defaulted, and immediately transferred their shareholdings to their female relatives... CH created two new listings for both these directors   .

Can you show your calculations as this doesn't sound right. There are 115 apartments and a big commercial space which should leave plenty of room for profit for the developer.

You did say "from" 94K!!!  A very, slight, tiny flaw in your evaluation.   

jjc please pm the link, so I can investigate further.

Thanks ilmoro. Yes, based on the schedule you found the £94k is a teaser price for 1 unit only. The GDV however has lost c.£1m from the VR GDV (£17.5m). Which added to some other slightly stretched / unclear assumptions (finance at 6.5% really? doesn’t include any finance costs for the acquisition of the building btw, which may have some further time drag if made, as presumably quite likely, months before the loan drew with SS – the SPV was incorporated in Jul’15, will the 5% contingency be sufficient for the possible structural issues mentioned by the valuer due to adding the additional floors, when will the commercial space be let & at what prices etc etc) I can see another £1–2m (hence total 2-3m from VR) being eroded from profits quite easily (even assuming the commercial space goes ok). Things don’t always pan out in real life as they do on paper.

That said the deal is still workable imo (if they can keep the potentially complex build costs to budget, & do find the buyers relatively quickly), & I quite like it. I’d like to know more about the status on the build & sales progress however. On the schedule only 2 reservations had been taken (& no sales made).

Ps. Wasn’t meaning to ruffle any feathers btw Liz. Am new to this deal (& much of the fab wacky world of SS). Would like to invest much more on the platform, but do possibly take a sterner look than some as I build my personal picture. A good occasion to thank people like cooling_dude for the much good work done, so here goes.

I was a bit surprised by the update of a week ago saying the borrower has found another development funder.  Since SS already have the first charge, I would have thought they'd have an advantage over any other lender because some of the legal work wouldn't need to be paid for again.  But perhaps that's peanuts in the big picture.

What did strike me was that if SS have been asked for a redemption statement, repayment could come soon.  And if it did, that'd put £3.8M into investors' hands, and that's a lot of money to find a new home for.

The fact that SS are "In discussions" suggests that there's still a chance SS could keep the loan/borrower.  I have my fingers crossed.