DFL005 - Arboretum, Land with PP - SUSPENDED

The extension still hasn't been updated as it only has 4 days left. I hope the extension gets put on before the remaining days goes into minus so the interest still gets paid. 

Reading 0 days now.  Would be good to get an update from Lendy on this before it starts showing in default/negative days. If they have agreed an extension it needs to be reflected in the remaining days for the loan.

I hope you're a bad shot when it comes to aiming at your feet!!!

As many will have noticed, a huge new tranche (16) appeared today at 14:52 for £1.6M.

Is this a record for a tranche?

At the same time, the asset value was changed from £13,300,000 to £14,065,000 with a respective LTV reduction from 54% to 51%.

This change in asset value is in line with the 'option 1' scheme valuation from the VR (page 16).

EDIT: Tranche overview repeated here (bold and italic as per the web site, but a little redacted for the mods):

The sixteenth tranche of development funding £1,612,386 is required for this development, which is now nearing completion. This tranche is larger than previous tranches as the Borrower is making every effort to get the site completed, with extra resources being applied. There should only be one or two further tranches (up to £975k left in facility) to fund the remaining works in order to achieve practical completion in the next few months.

Signed Heads of Terms have now been seen by Lendy, confirming the proposed equity investment from the same investor that previously funded the £3m refinance of the M****** H**** (PBL058). This investment, together with the proposed sale of freehold title, will generate more than sufficient funds to repay the loan balance. All matters are in the hands of the Borrower's solicitor and full repayment is expected prior to the expiry date of 6th Janury 2018.

The funding of the remaining tranches is key to enabling the practical completion of the site within the proposed timeline.

Independent Monitoring Surveyor (IMS) has undertaken site visit and confirmed monies have been spent as evidenced through works completed and materials on site.

The latest IMS report confirms site progress as follows:

"The lodge and apartment units are structurally complete with second fix M&E ongoing.

Final dressing of lodges will commence from Monday 18th September with units sealed off from site staff and handed to the management team thereafter.

The back of house building is under construction and the water tanks installed.

The drainage runs and final service connections to each unit are progressing with the air handling units arriving on site from Monday 18th September at a rate of 10 per week.

The Leisure building has been erected to ground floor level (as of 12th September) and the remainder of the frame is on site. The programme shows the roof to the unit to be complete by 22nd September and weather permitting this is considered reasonable.

The M&E first fix will commence on the lower floors once all heavy lifting is complete so that this can continue whilst the frame and roof is completed. The second fix work will then follow once the building is watertight."

Nice phrase (my bold)!

I can see a tempting 'cashback' offer coming into play on this tranche.

Looks like the cash-back tranche has been resurrected email just received: "DFL005 - Tranche 16 ***** 1% CASHBACK OFFERED"

I was quite happy with the way the last one panned out for me, but I think it unlikely I'll be tempted this time.

Just took some notice of the size of the tranche - £1,612,386 - no wonder.


In Edit: There is more information in the email and on site but the rationale for the cash-back stated by Lendy is
"As the Borrower expects practical completion within months we appreciate that there will only be one or two more monthly interest payments. As a result of this, we are offering cash back on this tranche as an incentive to provide the funds required to the Borrower to assist with achieving practical completion and in turn the successful repayment of the existing loan."

Also £358,776 already on the SM as I type.

Red flags🚩🚩🚩 ☢️