cooling_dude
Bye Bye's for the PPI
Posts: 2,853 
Likes: 4,298
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Post by cooling_dude on Jul 18, 2016 11:59:13 GMT
PBL122 - REPAID
PBL167 - Live
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| PBL122
| PBL167
| | Loan Amount | : | £
| 923,194
| 2,620,042
| | Security Value | : | £
| 1,425,000
| 4,340,000
| | SS Indicated LTV | : |
| 65%
| 60%
| | 90 Day Market Valuation | : |
| Unknown | 3,442,000
| | LTV Based on 90 day Market Valuation | : |
| N/A | 76%
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PLEASE NOTE : This post (and all my DD posts) are no longer being updated by myself (besides the basic loan status)
Loan Information & Observations
Borrower
- SS says that our borrower is B***** Spa & Gym Limited.
- A quick search on companies house finds the above company was incorporated on Dec 2010, but has been dormant since at least 2012.
Loan
- Our borrower is looking to purchase the seven cottages that he has been able to purchase off-market via an option.
- The plan is to sell the individual cottages on to investors who are looking to generate income from their rental potential, which will then allow our borrower to exercise another option to purchase the rest of the site.
- They plan to run the site on behalf of their investors on a management basis.
Security
- The property comprises seven holiday cottages around a central courtyard, six of which have individual garden spaces.
- The wider site (not part of the security, but which the borrower has the option to purchase) consists of holiday accommodation complex with land totalling about 82.5 acres (33.4 hectares). This includes several buildings and outbuildings, and to the north-west of the site are a range of modern farm buildings, which the borrower plans to alter to create a gym, spa and restaurant.
- The above, along with the borrowers name, would indicate that the immediate plan (sell the individual cottages on to investors) is just the borrower jumping through hoops to achieve their ultimate goal (gym, spa and restaurant)
- There is a site nearby which was recently approved to carry out fracking site nearby and more planned nearer to the premises (information provided by jjc - more information here)
Exit Strategy
- The borrower is currently working on selling the properties and have had several enquiries pre-purchase of the site from both UK & international buyers.
| Code Number Assigned | : | 18/07/2016 | | Loan went live @ | : | 19/07/2016 | | Allocation | : | At least £10,000 | | Amount of Investors @ Live | : | 910
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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
Posts: 11,330
Likes: 11,549
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Post by ilmoro on Jul 18, 2016 12:18:23 GMT
Will do DD stuff later... it's very hot and I'm very busy ;-) Ah the irony 
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Post by geraldine1210 on Jul 18, 2016 12:30:09 GMT
Will do DD stuff later... it's very hot and I'm very busy ;-) We all appreciate your hard work.
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jjc
Member of DD Central
Posts: 414
Likes: 632
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Post by jjc on Jul 18, 2016 14:43:56 GMT
If it helps CD kick off, the farm is not far from 3rd Energy’s KM8 approved fracking site (at Flamingo Land mentioned in VR). Not familiar with 3rd Energy’s plans but seems they have also applied for sites around Pickering (which is closer still). One of the main concerns of the local community was that the first approval (made a week before the VR following an earlier recommendation from N Yorks CC) might pave the way for many more sites in the area. Fracking means lots of HGV traffic & 24/7 ops, amongst other things. It’s unclear to me whether this has been taken into account in the valuation (eg redressing the hope value implied but not quantified in 7.4) www.third-energy.comfrackfreeryedale.org/HTH (now back to the sunshine, busy here too ;-)) |
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NSFW
Posts: 118
Likes: 58
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Post by NSFW on Jul 18, 2016 16:14:21 GMT
Hyphen missing there. Looks like it will be a few years before anything major happens at Rydale in regards to fracking.
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dan83
Posts: 243
Likes: 84
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Post by dan83 on Jul 18, 2016 16:37:43 GMT
With a loan value if £923,124 will I be guaranteed £100, or should I set my prefund higher and sell the rest?
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Jul 18, 2016 16:39:29 GMT
With a loan value if £923,124 will I be guaranteed £100, or should I set my prefund higher and sell the rest? It will be bottoms up not %. Set your pre-funding to the max you want  My guess is allocation will be between £350 & £400.
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am
Posts: 1,495
Likes: 601
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Post by am on Jul 18, 2016 20:31:10 GMT
Since the borrower is exercising an option it's not necessarily representative of the market price, but have we any idea how much he is paying. Also how much of the loan is earmarked for the planned upgrades (which will apparently double the rental rates, and presumably also the market values) of the cottages?
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Jul 18, 2016 20:42:51 GMT
Since the borrower is exercising an option it's not necessarily representative of the market price, but have we any idea how much he is paying. Also how much of the loan is earmarked for the planned upgrades (which will apparently double the rental rates, and presumably also the market values) of the cottages? No Idea; it's not something that SS disclose before or after the loan goes live. Also, because this is sale via the option our borrower has, there is no property listing online to give us an indication. The only way to find out is via the land registry after the sale has taken place (for a small fee).
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tombraider
Member of DD Central
Posts: 117
Likes: 103
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Post by tombraider on Jul 18, 2016 21:28:15 GMT
they are on the usual property sites though with indicative values that the agents are advertising them at...2x175k - 3x225k - 1x250k - 1x275k plus varying management fees - 1.55m
Fracking potentially will stagnate all sales in that area. I'm a bit sceptical at present. I live near there......
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mikes1531
Member of DD Central
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Post by mikes1531 on Jul 19, 2016 1:22:41 GMT
With a loan value if £923,124 will I be guaranteed £100, or should I set my prefund higher and sell the rest? It will be bottoms up not %. Set your pre-funding to the max you want My guess is allocation will be between £350 & £400. : Do you really think there are going to be more than 2300 investors pre-funding this one? (923,124/400 = 2307) And even if there are, not all are going to pre-fund for £400+, so my guess would be for an allocation in the £600-800 range. In fact, if the number of investors is more like the 1000 average of the last half-dozen loans, the maximum allocation easily could exceed £1000.
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am
Posts: 1,495
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Post by am on Jul 19, 2016 7:09:42 GMT
they are on the usual property sites though with indicative values that the agents are advertising them at...2x175k - 3x225k - 1x250k - 1x275k plus varying management fees - 1.55m Fracking potentially will stagnate all sales in that area. I'm a bit sceptical at present. I live near there...... If they are worth (on the market for) £1.55m after the planned upgrades, they are presumably worth less in their current condition. Knock off 10%, and that's just below the valuation given. Since the upgrades are supposed to greatly enhance the rental yields I would have thought that you need to knock off rather more. (I didn't notice anything in the valuation that explicitly included any hope value.)
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Jul 19, 2016 8:09:54 GMT
It will be bottoms up not %. Set your pre-funding to the max you want My guess is allocation will be between £350 & £400. : Do you really think there are going to be more than 2300 investors pre-funding this one? (923,124/400 = 2307) And even if there are, not all are going to pre-fund for £400+, so my guess would be for an allocation in the £600-800 range. In fact, if the number of investors is more like the 1000 average of the last half-dozen loans, the maximum allocation easily could exceed £1000. My thinking was... Recent sub £1m have indeed only attracted about 1000 investors, but that was when the SM was bloated. Now the SM has settled, this being a slightly more attractive loan and it being close the £1m mark, I think it may breach the 2000 mark, and actually be close to 2500 investors. However, I've been notoriously wrong with my allocation predictions recently... probably be more like 10 investors
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bloodycat
Member of DD Central
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Post by bloodycat on Jul 19, 2016 8:52:07 GMT
If they are worth (on the market for) £1.55m after the planned upgrades, they are presumably worth less in their current condition. Knock off 10%, and that's just below the valuation given. Since the upgrades are supposed to greatly enhance the rental yields I would have thought that you need to knock off rather more. (I didn't notice anything in the valuation that explicitly included any hope value.) I don't think there's any significant improvement to the properties themselves, a bit of minor refurbishment. I'm assuming the predicted doubling in rental yields is expected after the rest of the surrounding facilities are in place enhancing the desirability of the location, which is going to be some way down the line.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Jul 19, 2016 10:25:05 GMT
Just going live... Allocation? No idea; asked for £2000.00 got £2000.00  ! (You was much closer than me mikes1531  !) |
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