DFL004 - Resi. Devel. Wolverhampton - DEFAULT
Jul 12, 2016 15:11:32 GMT
EJi, geraldine1210, and 1 more like this
Post by cooling_dude on Jul 12, 2016 15:11:32 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PLEASE NOTE : This post (and all my DD posts) are no longer being updated by myself (besides the basic loan status)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 about this loan
Update - 14/10/2016
Borrower
Security
Exit Strategy
@ 1st Tranche 15/07/16 | @ 2nd Tranche 19/08/16 | @ 3nd Tranche 15/10/16 | @ 4nd Tranche 22/11/16 | @ 5th Tranche 20/01/17 | @ 6th Tranche 13/03/17 | @ 7th Tranche 17/05/17 | @ 8th Tranche TBD | |||||||||
Loan Amount | : | £ | 7,252,816 | 828,472 | 752,248 | 844,446 | 858,115 | 706,322 | 660,784 | |||||||
Gross Dev. Value | : | £ | | 20,000,000 | ||||||||||||
SS Indicated LTGV | : | 60% | ||||||||||||||
Value | : | £ | Unknown | |||||||||||||
LTV | : | Unknown | ||||||||||||||
90 Day Market Valuation | : | £ | Unknown | |||||||||||||
LTV Based on 90 day MV | : | Unknown | ||||||||||||||
Term | : | 72 days | ||||||||||||||
% PA | : | 12% |
PLEASE NOTE : This post (and all my DD posts) are no longer being updated by myself (besides the basic loan status)
Observations about this loan
Update - 14/10/2016
- A further tranche of Development Funding £752,248 now required bringing the total loan to £8,833,536 (44% LTGV)
- IMS has undertaken monthly site visits and confirmed Tranche 2 monies have been spent as evidenced through works completed and materials on site.
Borrower
- SS say that our borrower is Q.E.D. D*********** Ltd. They were set up specifically for the purchase and development of the security in this loan. The Director (and sole Shareholder) is in his late 30s and has built up a successful track record in property. Although this Company is a single purpose vehicle (SPV) for this project, the Director has provided a personal guarantee which provides additional comfort.
- A little research confirms that our borrower is a SPV (established on 04 Sep 2013); the ultimate parent company is Q.E.D. C********** Ltd which was also established on 04 Sep 2013.
- There is only a single director behind the SPV & parent company and he is also the sole shareholder of the parent company. He has been within real estate (in the capacity of Director) since 2005, and a quick look at the companies that he is attached to brings up no red flags.
The Loan
- This loan is rolling on from PBL060 & PBL061 - These loans provided to fund land purchase and start of development against existing site value of £8.87m.
- The existing bridges will now be incorporated into this new development facility.
- The site was visited by the SS Development Finance Director and an Independent Monitoring Surveyor (IMS) instructed to monitor build works and costs as the development progresses. Build programme will be completed over a 12 month period with the existing experienced development team with monthly drawdowns of development funding made upon receipt of IMS update reports confirming works completed.
- Funding will be under 65% of the Gross Development Value for the scheme of £20m.
- First tranche of development funding of £505k now required.
Security
- The property is a former industrial premises constructed towards the end of the 19th Century
- The property had been vacant for over 10 years, before being purchased for development. The factory is one of Wolverhampton’s most iconic industrial buildings and is a project backed not only by the city community but has the overwhelming support of the council as they are keen to see its regeneration being that in the centre of Wolverhampton’s regeneration zone.
- The overall project will consist of 116 residential apartments ranging from 1-bed to 5-bed units. The development is being completed in 7 phases, with works having commenced in some form across all phases. Phase 1, consisting of 25 units, is all complete and almost fully let. Phases 2 (consisting of 7 units), 3 (13 units) and 4 (9 units) are also well advanced. So effectively half of the development will be completed within the next few months.
Exit Strategy
- Our borrower has obtained verbal agreement from a Private Rented Sector (PRS) Guarantee Scheme to refinance all of the borrowing at Practical Completion of the site and written confirmation will be obtained within the next 2 months.
- Alternatively, units could be sold off individually if for any reason the PRS Scheme fell through.
Initial Loan | Tranche 2 | ||
Code Number Assigned | : | 12/07/2016 | 23/08/2016 |
Loan went live @ | : | 13/07/2016 | TBD (Due 24/08) |
Allocation | : | 100% | TBD |
Amount of Investors @ Live | : | 2780 | N/A |
BDT