Post by cooling_dude on May 13, 2016 8:32:37 GMT
This Loan is currently LIVE
PLEASE NOTE : This post (and all my DD posts) are no longer being updated by myself (besides the basic loan status)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
> The borrower has the option to purchase a site which he has gained planning permission on and proved the presence of a valuable resource within easy reach. He needs to complete on the Option agreement in order to maximise his potential return before selling on. The planning permission provides for three specific phases of development consisting of the removal of three glacial moraine kames and the creation of three fishing ponds beneath.
> The borrowers intention is to complete this transaction first in order to crystallise his Option agreement, and then very quickly sell on to a company who are interested in the proven natural resources on site. That company will develop the leisure aspects of the site whilst concurrently removing/selling the valuable commodity.
> The planning permission provides for three specific phases of development consisting of the removal of three glacial moraine kames and the creation of three fishing ponds beneath. The development requires the removal of sand and gravel deposits from the property and relies on the imports of inert waste materials to assist with forming the final land form and pond lining.
> The valuation report goes into a lot of detail about the sand on the site; the best way I can summarise it is... "there's lots of it, and it's marketable"
> Worryingly, the valuation reports that the borrower requested we rely on the information provided by the Land Agent that represents our borrower, and not to undertake independent enquiries of Scottish Environment Protection Agency. Further on in the valuation report, once again the borrowers consultant requested that the valuer does not make direct enquiries of the planning authority but rather rely on supporting information provided by Land Agent that represents our borrower.
> Planning consent was granted on 18 April 2013, for the “Formation of fishing ponds and associated facilities”. The permission was subject to 29 conditions, the majority of which the valuation report consider unduly onerous for this type of development. It does highlight some conditions of interest, but nothing too concerning.
> Although the Market Value provided is £2,700,000, subject to the Special Assumption of a Special Purchaser (such as a mineral operator) the market value of this security would be £3,500,000. In this event, the security would have an LTV of 54%.
> The valuation report notes "We are of the opinion that a sale of the subject premises would take in the order of twelve months from commencement of marketing to conclusion of missives". Annoyingly, no 90 or 180 day market period valuation is provided.
> Appendix 4-15 is missing...
> Exit Strategy
The next purchaser has been found, a deal has been agreed for over £6.5m (this is confirmed in the valuation report, and the letter from the prospective purchaser is supposedly attached but is part of one of the missing Appendix page) and completion of the next sale should take place within the next 3/6 months, it is currently in legals and we are fully aware of all the parties involved. He needs to complete the purchase in order to realise his uplift in value on the site.
| Loan Amount | : | £1,890,000 |
| Security Value | : | £2,700,000 |
| SS Indicated LTV | : | 70% |
| 90 Day Market Valueation | : | Not Provided |
| LTV Based on 90 day Market Valueation | : | N/A |
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
> The borrower has the option to purchase a site which he has gained planning permission on and proved the presence of a valuable resource within easy reach. He needs to complete on the Option agreement in order to maximise his potential return before selling on. The planning permission provides for three specific phases of development consisting of the removal of three glacial moraine kames and the creation of three fishing ponds beneath.
> The borrowers intention is to complete this transaction first in order to crystallise his Option agreement, and then very quickly sell on to a company who are interested in the proven natural resources on site. That company will develop the leisure aspects of the site whilst concurrently removing/selling the valuable commodity.
> The planning permission provides for three specific phases of development consisting of the removal of three glacial moraine kames and the creation of three fishing ponds beneath. The development requires the removal of sand and gravel deposits from the property and relies on the imports of inert waste materials to assist with forming the final land form and pond lining.
> The valuation report goes into a lot of detail about the sand on the site; the best way I can summarise it is... "there's lots of it, and it's marketable"
> Worryingly, the valuation reports that the borrower requested we rely on the information provided by the Land Agent that represents our borrower, and not to undertake independent enquiries of Scottish Environment Protection Agency. Further on in the valuation report, once again the borrowers consultant requested that the valuer does not make direct enquiries of the planning authority but rather rely on supporting information provided by Land Agent that represents our borrower.
> Planning consent was granted on 18 April 2013, for the “Formation of fishing ponds and associated facilities”. The permission was subject to 29 conditions, the majority of which the valuation report consider unduly onerous for this type of development. It does highlight some conditions of interest, but nothing too concerning.
> Although the Market Value provided is £2,700,000, subject to the Special Assumption of a Special Purchaser (such as a mineral operator) the market value of this security would be £3,500,000. In this event, the security would have an LTV of 54%.
> The valuation report notes "We are of the opinion that a sale of the subject premises would take in the order of twelve months from commencement of marketing to conclusion of missives". Annoyingly, no 90 or 180 day market period valuation is provided.
> Appendix 4-15 is missing...
> Exit Strategy
The next purchaser has been found, a deal has been agreed for over £6.5m (this is confirmed in the valuation report, and the letter from the prospective purchaser is supposedly attached but is part of one of the missing Appendix page) and completion of the next sale should take place within the next 3/6 months, it is currently in legals and we are fully aware of all the parties involved. He needs to complete the purchase in order to realise his uplift in value on the site.
| Code Number Assigned | : | 13/05/2016 |
| Loan went live @ | : | 14/05/2016 |
| Allocation | : | 26.7% |
| Amount of Investors @ Live | : | 1900 |
