rambler
Member of DD Central
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Post by rambler on Oct 16, 2018 11:08:43 GMT
New project 'O****** M***** P****' now live.
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Steerpike
Member of DD Central
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Post by Steerpike on Oct 16, 2018 12:19:24 GMT
I quite like the look of this Orkney project but recent experience has taught me to be wary of 12% debentures on Abundance.
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scc
Member of DD Central
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Post by scc on Jun 12, 2019 20:16:25 GMT
New building project up.
Can't say I like the look of it much. I don't see how you can essentially spaff £3m on refurbishing 30 apartments in a Liverpool building which is leasehold.
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sl75
Posts: 2,092
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Post by sl75 on Jun 13, 2019 7:49:16 GMT
New building project up. Can't say I like the look of it much. I don't see how you can essentially spaff £3m on refurbishing 30 apartments in a Liverpool building which is leasehold. A summary is on page 18 of the offer document, but only £1.1M of that is stated to be spent on "Fit out and furnishings" ("spaffed on refurbishing" as you put it).
Divided by the 33 homes that works out at about £33k per unit, and as the site has seemingly only just been converted to apartments would be a complete fit-out rather than merely "refurbishing".
The remaining £2M seems to be split about £1.3M for costs to date (presumably including the cost of acquiring the site and converting it to apartments, together with associated planning and architects fees), and £0.7M for future costs and fees, with about half of those future costs simply being the monies that will be used to pay interest to debenture holders.
As I understand it from a quick skim-read of most of the document, and a focus on a couple of areas, in order for the project to follow its preferred exit strategy in about 18 months, it would be necessary for the income stream generated by the development to be worth an average of about £100k per unit to a long-term investor... the "interest rate risk" highlighted towards the end of page 23 seems quite significant in this respect.
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scc
Member of DD Central
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Post by scc on Jun 13, 2019 9:40:45 GMT
Yes, I appreciated all that detail when I read the proposal. But it's still roughly £100K/leasehold apartment in Liverpool. To me, that just feels high as does £33K for a fit out if you want to just focus on that cost. There are lots of nice looking apartments and even decent looking freehold terrace houses for under £100K in Liverpool. I'd expect an economy of scale with it all happening in one building which at the moment I'm not seeing. But YMMV.
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Post by GentlemansFamilyFinances on Feb 27, 2021 23:01:40 GMT
Email last week about coming projects on Abundance.
I for one am looking forward after the Anaerobic Digestion set-back.
I think that the platform needs to have more or less 1 or 2 investments open at all times to keep things interesting.
Otherwise, I doubt it'll attract enough investors to keep the wheels turning.
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corto
Member of DD Central
one-syllabistic
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Post by corto on Feb 28, 2021 13:06:56 GMT
I do agree to some degree. There is quite a bit of drag on this platform.
However, if their long-term assets run well, they are also interesting.
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Post by GentlemansFamilyFinances on Mar 23, 2021 20:22:24 GMT
After an email almost a month ago, I checked into my Abundance account and there are no new offers listed.
This is a very poor show as right now there are millions of people shovelling money into their ISAs (and pensions too) before the tax year ends in a few days and Abundance are just missing out on it.
I'm not a shareholder but if I was, I'd be concerned that there have been no new loans/bonds/debentures listed for months and after the A*****n debacle - when is the ramp up in offers going to happen.
Is there any light at the end of the tunnel or is the pipeline blocked?
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Post by failedtheturingtest on Mar 23, 2021 20:54:52 GMT
I'm not really surprised that there aren't many deals being done with the headwind of covid lockdown to contend with. But like you, I'm disappointed that the projects mentioned in that email haven't materialised. I transferred some money out a while ago to buy stocks, but left some money in Abundance largely because of that email. If I'd known that the projects weren't going to materialise before the end of the tax year, I'd have moved all of my cash out. Which I guess is what Abundance was trying to prevent by sending that email.
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Post by GentlemansFamilyFinances on Mar 23, 2021 22:47:20 GMT
I am surprised that there are not more deals as there is no shortage of investment required and projects that get financed/refinanced.
There's maybe a £10m or €15m limit on the size of offers that they can list but I'm sure that if you gave me £10m tomorrow, I'd be able to find something green to buy.
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Post by failedtheturingtest on Mar 24, 2021 11:17:46 GMT
What a coincidence, the project pipeline now has a pipeline project. But the level of interest might not stimulate much interest...?
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Post by GentlemansFamilyFinances on Mar 24, 2021 11:28:58 GMT
I think that I sent that message around 12 hours too early.
New investment open for N******* G** N******* over 10 years at 1.6% for £1m.
Already 5% filled after maybe 30 minutes of being open with an average (rough) of £1,000 per investor.
I've had a quick look and this is just the sort of investment that is needed to reduce emissions, prepare for the energy shift and working towards net zero.
It's probably a good move for Abundance as there's a lot of work to do with the gas network in the UK - I think that I'm right in saying that this project is a first for the Abundance team(?), so hopefully it's a deep seam to mine.
The prospectus says that this company will spend £500m over the next 5 years to replace old pipe for new (suitable for hydrogen). So £1m is a drop in the ocean.
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Post by GentlemansFamilyFinances on Mar 24, 2021 11:31:35 GMT
What a coincidence, the project pipeline now has a pipeline project. But the level of interest might not stimulate much interest...? I'd say that this is low risk, akin to the council investments that have been available. Depends on what Abundance are investing for - maximum gains, to beat bank interest at 0.05% or to put their money to good/green use - the appetite for this project may surprise you...
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Post by GentlemansFamilyFinances on Mar 27, 2021 20:45:56 GMT
the new offer seems to be filling nicely for Abundance with over a third subscribed in the first few days.
I imagine that there's been a few people who will bung in their spare account balance but the average investor is putting £1,000 in.
I'd imagine that they'll have another one open before the end of the 2020/21 tax year that can be held in an ISA (council ones can't IIRC)
so not much time for them to get their act together!
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Post by brianac on Apr 3, 2021 14:05:04 GMT
the new offer seems to be filling nicely for Abundance with over a third subscribed in the first few days. I imagine that there's been a few people who will bung in their spare account balance but the average investor is putting £1,000 in. I'd imagine that they'll have another one open before the end of the 2020/21 tax year that can be held in an ISA (council ones can't IIRC) so not much time for them to get their act together! I really don't get this one, as in I don't see how Hydrogen is viable as a fuel, - the only "green" way to produce it is with Electricity, add in the production/transport costs, shrinkage, plus a proift for the company, then as an energy source it's going to be way dearer than using Electricity directly, never miond the cost of converting all the gas appliances to run on Hydrogen gas, pretty much like the conversion to North sea gas but in reverse (for those who remember that far back - I do) - Town Gas that was used up until then was pretty much Hydrogen + Carbon Monoxide. Back then Gas was produced locally and used locally, now there is a national transmission network, losses are going to be a big issue too - Hydrogen is the smallest Fuel gas molecule available by a large margin - it's going to find every leak going. (if I remember correctly, the smallest molecule bar Helium but my days of school science are a long way behind me!!) No wonder the Divi's on this are so low <I'm out> Brian
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