1stwaz
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Post by 1stwaz on Feb 11, 2018 17:23:09 GMT
No need to wait. There's a link on DD Central to the webcast of last Wed's Cardiff Council Planning Committee meeting where the long-awaited planning consent was granted. This loan now looks a decent bet for anyone seeking a bit of Brucie Bonus  Meanwhile, those who can't/won't join ddc are still waiting. Good news about the planning permission but I am not expecting a bonus, simply a long extension to sell or build out the site with the increase in value.
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elliotn
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Post by elliotn on Feb 13, 2018 5:42:16 GMT
12%, c450 days would have had Gt frothing in his pro-Ly days.
Lot of time spent enhancing pp.
Location, location, location (3*tertiary establishments).
Progress on Huddersfield A nearing completion (potentially freeing up 3.5M on Ly that may dampen immediate borrowing requirements for the Celtic loans).
I'm in, primarily by diversifying existing SD loans, VR to be pored over.
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mary
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Post by mary on Feb 13, 2018 7:36:45 GMT
I'm too exposed to this borrower already.
But it would be useful to know how sales are progressing at Huddersfield so we can see how likely the repayment will be on time.
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hazellend
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Post by hazellend on Feb 13, 2018 9:23:48 GMT
I’ve been in this loan since the beginning on MT, followed it across here, and feel confident the borrower will complete and sell successfully. I enjoy seeing loans through to completion from the start, and I definitely have a soft spot for this one
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mary
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Post by mary on Feb 13, 2018 16:02:14 GMT
Just realised that the interest on the full £5.7m, to cover the extension for 15 months, is over £1m. So there is really only ~500k being loaned to fund actual site improvement works.
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Post by GSV3MIaC on Feb 14, 2018 10:21:37 GMT
Interesting that the new offering is listed as tranche1 . I could have sworn we were up to a higher number by now??
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warn
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Curmudgeon
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Post by warn on Feb 14, 2018 23:01:58 GMT
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Post by ColinR on Feb 16, 2018 19:22:42 GMT
I just want to add a small note to this, but I want it to be small, that is I want you all to note that I AM NOT AN EXPERT ON ANYTHING and I don't want throw hysterical negativity around... However, I live in Cardiff, and there's reportedly a bit of an over supply of student flats here: www.walesonline.co.uk/news/wales-news/second-student-flats-block-cardiff-13924531I don't know how this plays in to the profitability of this project, but I think it's something worth knowing if you're thinking of investing here. Apologies if this has been covered before, I haven't read the whole thread, I'm pretty new here. Please do treat this information as part of the bigger picture, as I'm sure you will! This is quite a different location from the blocks in the newspaper report, which is low on details to be honest. (If anyone wants to have a long, off-topic discussion on the wisdom of putting so many of Cardiff's economic eggs in the education basket then please just give me a shout!) I'd also add that Cardiff's a fine city, a good place to live and work and no-doubt a good place to study too. (There, I think I've covered all my bases there.) |
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mary
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Post by mary on Feb 16, 2018 19:31:52 GMT
I just want to add a small note to this, but I want it to be small, that is I want you all to note that I AM NOT AN EXPERT ON ANYTHING and I don't want throw hysterical negativity around... However, I live in Cardiff, and there's reportedly a bit of an over supply of student flats here: www.walesonline.co.uk/news/wales-news/second-student-flats-block-cardiff-13924531I don't know how this plays in to the profitability of this project, but I think it's something worth knowing if you're thinking of investing here. Apologies if this has been covered before, I haven't read the whole thread, I'm pretty new here. Please do treat this information as part of the bigger picture, as I'm sure you will! This is quite a different location from the blocks in the newspaper report, which is low on details to be honest. (If anyone wants to have a long, off-topic discussion on the wisdom of putting so many of Cardiff's economic eggs in the education basket then please just give me a shout!) I'd also add that Cardiff's a fine city, a good place to live and work and no-doubt a good place to study too. (There, I think I've covered all my bases there.) In an oversupply situation, those of lowest quality will be hardest to rent. These will be brand new and therefore able to price towards the top of the market (at least until something even newer takes over). Therefore I would only be concerned if I was invested in lower quality rentals which would likely require investment to upgrade the quality to attempt to compete.
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guff
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Post by guff on Feb 16, 2018 19:36:52 GMT
I just want to add a small note to this, but I want it to be small, that is I want you all to note that I AM NOT AN EXPERT ON ANYTHING and I don't want throw hysterical negativity around... However, I live in Cardiff, and there's reportedly a bit of an over supply of student flats here: www.walesonline.co.uk/news/wales-news/second-student-flats-block-cardiff-13924531I don't know how this plays in to the profitability of this project, but I think it's something worth knowing if you're thinking of investing here. Apologies if this has been covered before, I haven't read the whole thread, I'm pretty new here. Please do treat this information as part of the bigger picture, as I'm sure you will! This is quite a different location from the blocks in the newspaper report, which is low on details to be honest. (If anyone wants to have a long, off-topic discussion on the wisdom of putting so many of Cardiff's economic eggs in the education basket then please just give me a shout!) I'd also add that Cardiff's a fine city, a good place to live and work and no-doubt a good place to study too. (There, I think I've covered all my bases there.) In an oversupply situation, those of lowest quality will be hardest to rent. These will be brand new and therefore able to price towards the top of the market (at least until something even newer takes over). Therefore I would only be concerned if I was invested in lower quality rentals which would likely require investment to upgrade the quality to attempt to compete. From personal experience with my daughter, there are a lot of poor quality rentals in the Cardiff area.
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Post by ColinR on Feb 16, 2018 19:56:51 GMT
I take that these are new, but so are the flats that are asking for change of use so they can take non-student tenants.
To be honest, I'm only aware of these newspaper stories and able to bring this to light - I don't know much about property or development at all (one reason why perhaps I shouldn't have invested in Lendy!) - because the boom in this type of building, which itself is pretty new, is so huge as to be readily visible to the not-very-well-informed man in the street like me. They are - almost literally - going up everywhere here.
The change of use application is temporary so perhaps they are expecting more students in the near future...
The plan for these flats is to sell them, I presume to a management company who will then let them out, or perhaps directly to an educational institution who can run them, as I don't see a three-year-resident student buying their room.
Again. Please add the pinch of anecdotal salt to what I say. The developer has obviously done a good trade with previous similar developments and you guys are doing your DD Central thing.
In time, if it's needed, I'll happily take a walk up to the site and take a picture or two!
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hazellend
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Post by hazellend on Feb 16, 2018 20:13:21 GMT
I'm happy to invest in development loans for student properties, and have invested in a block of PBSA through property partner with a net annual yield of 7.5% but I think it it is madness to buy an individual student property. It is very undiversified and likely to be very illiiquid.
The conspiracy theorist in me thinks the councils are very keen for oversupply of these properties as they see them as council housing of the future, as young people would enjoy living there.
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Feb 16, 2018 20:28:27 GMT
"the councils are very keen for oversupply of these properties as they see them as council housing of the future" - funnily enough hazellend I have always had this same opinion.
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hazellend
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Post by hazellend on Feb 16, 2018 21:09:18 GMT
" the councils are very keen for oversupply of these properties as they see them as council housing of the future" - funnily enough hazellend I have always had this same opinion. You'd hope that for one of the reasons developers like the PBSA sector - ie they can be built to a less stringent (aka lower cost) set of regulations - would be the same reason Local Authorities would not attempt to use them as dwellings. You'd hope the LA's legal counsel would advise against it and LA officers would down vote it. Maybe they would. But ... Property moose had a part equity offer (can't remember the exact details) to join a family office who were buying up multiple PBSA blocks to convert into council housing. The selling point was the guaranteed inflation linked rent from councils would make these properties highly desirable invesmtent vehicles. PS - I am not a fan of PM (to put it lightly), and would not recommend them.
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registerme
Member of DD Central
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Post by registerme on Feb 16, 2018 21:46:09 GMT
ColinR, just to say welcome to the forums, and thank you for your input. Local knowledge is one example of the things that each and every one of us can bring to the table that adds value to the discussion. RM
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