DFL006 - Student Accommodation, Cardiff SUSPENDED Sept 19, 2016 12:48:09 GMT markdirac, david42, and 9 more like this
Post by cooling_dude on Sept 19, 2016 12:48:09 GMT
THIS LOAN IS LIVE
|Loan Amount (First Tranche)||:||£||4,166,129|
|Security GDV||:||£|| 16,814,500*|
|SS Indicated LTGV||:||25%*|
|Current Value (19/09/2016)||:||£|| 6,229,500*|
|Current LTV (19/09/2016)||:||67%*|
|90-Day Market Value||:||£||5,092,375*|
* There are unilateral notices (UNs) in place amounting to £1.34m which protects the individual unit purchasers' purchase contracts (and ultimately, the sums paid pursuant to those contracts) which have been registered (or are in the course of being registered) on the Land Registry title in advance of the SS legal charge. See the overview below for more information.
PLEASE NOTE : This post (and all my DD posts) are no longer being updated by myself (besides the basic loan status)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 - M****** (Cardiff) Ltd
- The above company was established March 2015 and has no parent company
- S****** P*** D** is the sole director and 100% shareholder. He has a large portfolio of businesses he is attached to, with 62+ appointments on CH, the vast majority being in the property sector. He also owns a League One Football Club
- He is also connected to several student accommodation projects currently on MT; in fact, the security in this loan was used for a current MoneyThing loan (due to repay as a consequence of this loan)
- This loan is connected to PBL085, DFL003 & PBL135 (same director). All these loans are Student Accommodation Developments, and the actual borrowers are separate SPVs. As well as first legal charges over each property within the group, SS will have a debenture from each Company and also a cross guarantee between all 3 Companies so that all security is cross collateralised.
- As a DFL this loan will be used to aid in the development of the accommodation block
- The first tranche (£4.166m) is to refinance the lending currently in place with another funder (With MT) which was used to fund the land purchase and initial development set up costs.
- Build programme will be completed over an 11 month period with monthly drawdowns of development funding made upon receipt of IMS update reports confirming works completed.
- Funding will remain within 70% of the Gross Development Value for the development of £16.8m*.
- Development site with planning permission for student accommodation. The proposed scheme comprises of 6 detached 3 storey buildings (Blocks A - F) providing a total of 249 self-contained studio rooms.
- Planning Permission has been granted
- Comparisons between the MT valuation report and the SS valuation report (courtesy of ilmoro )
- GDV for SS £1m (£15.2m v £16.3m) higher because based on actual sales data, and not predictions. The latest phase is realising higher prices due to demand (+£5k per unit).
- GR has increased from £250 to £300 per unit & 4% yield (3.5% in MT) which results in an extra 600k
- MT 9m build cost + 500k S106 contribution, SS £7.5m, no S106. MT 20% developer profit, SS 15% profit
- Strangely, the 2 valuation reports give different sizes for build; 1.28ha (MT) vs 1.5ha (SS)
- The Market Value/ 90-Day Market Value & Gross Development Value indicated by SS (and on this overview) may seem to contradict what the Valuation Report shows. The reason for this is because of the following;
- SS have used the VR Gross Development Value (£16,285,000) + Freehold interest ground rents (£1,867,500) to indicate what they perceive to be the GDV = £18,152,500
- There are unilateral notices (UNs) in place which protects people that have provided deposits (85 units already exchanged) and amounts to £1,340,000. These take priority over our first charge and effects the GDV, LTV & 90-day LTV :
[/td][td style="text-align:right;padding:3px;"]Indicated Value In VR[/td][td style="text-align:right;padding:3px;"]Unilateral Notices[/td][td style="text-align:right;"]Actual Value (19/09/16)[/td][/tr][tr][td style="padding:3px;"]Market Value[/td][td]£[/td][td style="padding:3px;"] 7,567,500[/td][td style="padding:3px;"] 1,340,000[/td][td] 6,227,000[/td][/tr][tr][td]90-day Market Value[/td][td]£[/td][td style="text-align:right;"]6,432,375
[/td][/tr][tr][td style="padding:3px;"]Gross Development Value [/td][td]£[/td][td style="text-align:right;padding:3px;"]18,152,500
- Exit will be made from the sale of units. In addition to the 85 units already exchanged there are also a further 30 units with reservations fees taken. These units are all within the planned Phase 1 so there are only 38 units in Phase 1 left to be sold. Phase 2 units will not be released until the remaining units in Phase 1 have all been sold and works on site are well advanced on Phase 1.
- PBL085 (Huddersfield Block C) should be completed and fully sold early in 2017 and there is a profit in excess of £4.5m, which will be reinvested within the group to reduce the overall borrowing requirement.
|Code Number Assigned||:||19/09/2016|
|Loan went live @||:||20/09/2016|
|Amount of Investors @ Live||:||1967|
If you require any citation for the above information please PM me . Any observations you have please be sure to post it in this thread and I will try to add it to this overview.