PBL103 - Site with PP nr Hastings DEFAULT (Partial Recovery)
Jun 1, 2016 16:06:12 GMT
locutus, Please turn me over, and 2 more like this
Post by cooling_dude on Jun 1, 2016 16:06:12 GMT
This Loan Is 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PLEASE NOTE : This post (and all my DD posts) are no longer being updated by myself (besides the basic loan status)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 needs funds to purchase a 117-unit scheme which has full planning consent. The scheme consists of 3 blocks of which it is proposed to sell 45 units in block C and build the remaining units in Blocks A&B for the private rented sector should the market for open market sales not be proven. The Title will be split to enable independent funding of each block.
> The Developer has significant experience in procuring and obtaining planning permissions on unconsented sites with a recent successful planning permission achieved on a 215 unit residential scheme a 554 unit Student accommodation scheme.
> The land comprises a cleared site, formerly occupied by a residential property, sandwiched between the road and the cliff edge. The site is effectively terraced into three principal relatively level areas and comprises overgrown grassland and scrub. The former buildings were demolished over 25 years ago. The Development is in three blocks, A, B, and C, bu the valuation report only covers Blocks A and B which occupy the two lower terraces.
> The land has the benefit of an outline planning permission granted on 17 February 1989 for the demolition of the existing building and erection of a four storey apartment building (for 117 flats) over covered car parking. The valuation report notes that the planning permission was implemented by the demolition of the former buildings on the site, as confirmed in a Certificate of Lawfulness of Proposed Development granted on 06 February 2006.
> Block C, the largest individual block, is being funded by others, and will be built first. However, the contractor (our borrower) on both parts of the project will be the same, and the actual development of the scheme will presumably proceed in tandem.
> The borrower is consulting with his architects to amend, modernise and improve the design and layout of the apartments, reducing the amount of wasted communal areas, even at the expense of installing additional lift cores. However; the report and valuation is based on the current approved layouts. It is important to note that the amendments to the scheme will not change the design or bulk of the external fabric of the building (which would require a re-grant of PP)
> The valuation report notes that on the date of their inspection that there are other large-scale derelict buildings along the cliff-top apparently awaiting development, with or without planning permission. It says that coupled with the fact that this site has remained undeveloped through three national housing booms, it is clear that the economics of development in this location remain precarious.
> The cost of development of the proposed site would be £12,065,159 and have a GDV of £21,620,000 (This is not a DFL, but SS are considering offering this borrower development finance at a later date)
> Exit Strategy
Development finance either with Lendy/SS or another bank depending on DD and appetite.
| Loan Amount | : | £2,100,000 |
| Security Value | : | £3,000,000 |
| SS Indicated LTV | : | 70% |
| 90 Day Market Valuation | : | Not Provided |
| LTV Based on 90 day Market Valuation | : | 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 needs funds to purchase a 117-unit scheme which has full planning consent. The scheme consists of 3 blocks of which it is proposed to sell 45 units in block C and build the remaining units in Blocks A&B for the private rented sector should the market for open market sales not be proven. The Title will be split to enable independent funding of each block.
> The Developer has significant experience in procuring and obtaining planning permissions on unconsented sites with a recent successful planning permission achieved on a 215 unit residential scheme a 554 unit Student accommodation scheme.
> The land comprises a cleared site, formerly occupied by a residential property, sandwiched between the road and the cliff edge. The site is effectively terraced into three principal relatively level areas and comprises overgrown grassland and scrub. The former buildings were demolished over 25 years ago. The Development is in three blocks, A, B, and C, bu the valuation report only covers Blocks A and B which occupy the two lower terraces.
> The land has the benefit of an outline planning permission granted on 17 February 1989 for the demolition of the existing building and erection of a four storey apartment building (for 117 flats) over covered car parking. The valuation report notes that the planning permission was implemented by the demolition of the former buildings on the site, as confirmed in a Certificate of Lawfulness of Proposed Development granted on 06 February 2006.
> Block C, the largest individual block, is being funded by others, and will be built first. However, the contractor (our borrower) on both parts of the project will be the same, and the actual development of the scheme will presumably proceed in tandem.
> The borrower is consulting with his architects to amend, modernise and improve the design and layout of the apartments, reducing the amount of wasted communal areas, even at the expense of installing additional lift cores. However; the report and valuation is based on the current approved layouts. It is important to note that the amendments to the scheme will not change the design or bulk of the external fabric of the building (which would require a re-grant of PP)
> The valuation report notes that on the date of their inspection that there are other large-scale derelict buildings along the cliff-top apparently awaiting development, with or without planning permission. It says that coupled with the fact that this site has remained undeveloped through three national housing booms, it is clear that the economics of development in this location remain precarious.
> The cost of development of the proposed site would be £12,065,159 and have a GDV of £21,620,000 (This is not a DFL, but SS are considering offering this borrower development finance at a later date)
> Exit Strategy
Development finance either with Lendy/SS or another bank depending on DD and appetite.
| Code Number Assigned | : | 01/06/2016 |
| Loan went live @ | : | 03/06/2016 |
| Allocation | : | 27.7% |
| Amount of Investors @ Live | : | 1923 |
