david42
Member of DD Central
Posts: 419 
Likes: 346
|
Post by david42 on Mar 15, 2017 23:28:41 GMT
New loan lanched today. Title PC3 S****** B******** Milton Keynes Loan Amount £ 2,845,000 of which £1,388,757 is available from Property Crowd Security Value £ 5,425,000 LTV Based on Security Value 52.45% 90 Day Market Valuation ?? LTV Based on 90 day Market Valuation ?? Rate 10.2% Term 6 months Exit Route: Heads of agreement in place to sell the property for £7m. Presumably if that sale goes through it provides the funds to repay our loan. I have not got my head around the risks that might prevent us getting paid back. ISA available, at a charge of 1% pa. I have only skimmed the documents so far. I have no comments to add to the basic facts. Please use this thread to capture any comments on the loan. Hopefully charles will be able to address any concerns. |
|
phil
Posts: 190
Likes: 165
|
Post by phil on Mar 16, 2017 0:34:20 GMT
"The Owner has agreed heads of terms to enter into a forward sale agreement, with a FTSE 250 listed institutional PRS (Private Rented Sector)
landlord in the UK, that will be signed subject to uncontestable planning permission at a price of £7m."
It has PP, leaves me wondering what bearing "subject to uncontestable planning permission" will have on it.
|
|
|
|
Post by peerlessperil on Mar 16, 2017 1:15:27 GMT
You can have Outline Planning Consent, and then there is Full Planning Consent, not to mention the various hybrids that fall somewhere in between.....
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,573
Likes: 10,748
|
Post by ilmoro on Mar 16, 2017 1:18:53 GMT
The identity of the purchaser is in the valuation (needs some tracking of ultimate ownership through complicated company structure) as is the actual borrower. The company referenced at the top (name is a little deceptive) is the ultimate owner of the borrower and the owner of the provider of the share charge (direct owner of borrower) Incidentally the full loan, incl junior tranche is c4.5m It has full planning but its only just been granted so there could be a challenge and the S106 might not have been signed. Hopefully the forward purchaser isnt too strict as the affordable bit is .1% over the agreed %  |
|
|
|
Post by peerlessperil on Mar 16, 2017 1:53:40 GMT
The LTV isn't quite that straightforward. The junior tranche includes a VAT loan (I seem to recall the developers can reclaim the VAT on the resi component of the construction, but not the commercial), which although structurally subordinate in case of default mid-project, presumably gets paid back before the senior loan is repaid. This then leaves the senior tranche LTV at 80%.... The capital structure diagram ducks the issue. The timing is apparently: "where the capital will be repaid to the junior lender within 2 months upon expected receipt of a VAT refund" I'd read that as the VAT facility being repaid after a couple of months of the bond being issued, leaving the senior tranche at 80% LTV for the remainder of the term. No doubt charles will be able to provide an institutional grade response to clarify the matter. |
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,573
Likes: 10,748
|
Post by ilmoro on Mar 16, 2017 2:20:26 GMT
The LTV isn't quite that straightforward. The junior tranche includes a VAT loan (I seem to recall the developers can reclaim the VAT on the resi component of the construction, but not the commercial), which although structurally subordinate in case of default mid-project, presumably gets paid back before the senior loan is repaid. This then leaves the senior tranche LTV at 80%.... The capital structure diagram ducks the issue. The timing is apparently: "where the capital will be repaid to the junior lender within 2 months upon expected receipt of a VAT refund" I'd read that as the VAT facility being repaid after a couple of months of the bond being issued, leaving the senior tranche at 80% LTV for the remainder of the term. No doubt charles will be able to provide an institutional grade response to clarify the matter. No, the 80% isnt the LTV its the % of the total loan. Currently the senior tranche is c60% of the total loan, but once the additional vat facility component is repaid to the junior tranche it will be 80% (less due to accrued interest on Vat bit being applied to both tranches) but the actual total loan will have reduced. The LTV will remain unchanged for the senior tranche and reduced for the mezzanine. At least thats how I read it.
|
|
|
|
Post by charles on Mar 16, 2017 7:51:50 GMT
No, the 80% isnt the LTV its the % of the total loan. Currently the senior tranche is c60% of the total loan, but once the additional vat facility component is repaid to the junior tranche it will be 80% (less due to accrued interest on Vat bit being applied to both tranches) but the actual total loan will have reduced. The LTV will remain unchanged for the senior tranche and reduced for the mezzanine. At least thats how I read it. Hi ilmoro , yes, your interpretation of the deal details lines up with mine. The LTV of the senior tranche (which is the only bit in which Property Crowd investors are participating) remains 52.45% throughout the process. While the VAT facility only affects the junior tranche directly, it is material information that we felt necessary to disclose. Apologies for any confusion caused. peerlessperil, I hope that clarifies things, even if it might not be, strictly speaking, an "institutional grade" response? 
|
|
|
|
Post by peerlessperil on Mar 16, 2017 8:26:31 GMT
Sorry yes - shouldn't read these things at 1am.
Working backwards the VAT facility seems to be £575k
So in effect there is a transfer from the junior tranche to equity in the capital structure (i.e. value of equity moves from £1.625m to £2.2m once VAT refunded). Junior tranche shrinks from £1.22m to £0.645m and senior tranche as a % of total loan moves from 68% to 80%, but LTV unaffected.
All this of course ignoring the accrued on the VAT facility.
|
|
justsaying
Member of DD Central
Posts: 112 
Likes: 66
|
Post by justsaying on Mar 16, 2017 12:37:50 GMT
I can't seem to see how much has been raised so far, sure it was there on the Liverpool property. Am I being dumb or is it not there for this property? Not that I'm a sheep who will only jump when I've seen that many others already have........... |
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,573
Likes: 10,748
|
Post by ilmoro on Mar 16, 2017 12:46:48 GMT
I can't seem to see how much has been raised so far, sure it was there on the Liverpool property. Am I being dumb or is it not there for this property? Not that I'm a sheep who will only jump when I've seen that many others already have........... Nothing showing for me, maybe nobody has subscribed yet as they are busy filling in ISA transfer forms
|
|
|
|
Post by d_saver on Mar 16, 2017 13:26:42 GMT
I was wondering about this one too. You are not going mad. Definitely showed up on the last one. Might be due to the flashy carousel of pics on this one? Not sure that was there on the last.
|
|
|
|
Post by charles on Mar 16, 2017 14:14:35 GMT
I can't seem to see how much has been raised so far, sure it was there on the Liverpool property. Am I being dumb or is it not there for this property? Not that I'm a sheep who will only jump when I've seen that many others already have........... Hi everyone, Happy Thursday! justsaying, please don't panic. I assure you, you are not losing your mind. Your memory works fine - we do have counters that track how many days there are left to close and how much there is to go to reach our funding target. I don't think there are any sheep on this forum (only astute investors, from what I can see), but we're just tallying up the total day 1 investments before we start the funding meter later this afternoon. It seems we've got off to a flying start. @new2p2p, nope, nothing to do with tweaks to the dashboard, although you will notice that we've changed the look ever-so-slightly. ilmoro, we are indeed busy filling in applications to open new Property Crowd ISAs, how did you know? Uncanny.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,573
Likes: 10,748
|
Post by ilmoro on Mar 16, 2017 14:25:12 GMT
I can't seem to see how much has been raised so far, sure it was there on the Liverpool property. Am I being dumb or is it not there for this property? Not that I'm a sheep who will only jump when I've seen that many others already have........... I don't think there are any sheep on this forum You havent met Please turn me over yet then  You might spot him hanging around building sites with a camera (only if you look carefully)
|
|
|
|
Post by charles on Mar 16, 2017 15:09:13 GMT
You havent met Please turn me over yet then You might spot him hanging around building sites with a camera (only if you look carefully) Is his real name Shaun by any chance?
|
|
|
|
Post by charles on Mar 17, 2017 7:47:22 GMT
I can't seem to see how much has been raised so far, sure it was there on the Liverpool property. Am I being dumb or is it not there for this property? Not that I'm a sheep who will only jump when I've seen that many others already have........... Hi everyone, Happy Thursday! justsaying, please don't panic. I assure you, you are not losing your mind. Your memory works fine - we do have counters that track how many days there are left to close and how much there is to go to reach our funding target. I don't think there are any sheep on this forum (only astute investors, from what I can see), but we're just tallying up the total day 1 investments before we start the funding meter later this afternoon. It seems we've got off to a flying start. @new2p2p, nope, nothing to do with tweaks to the dashboard, although you will notice that we've changed the look ever-so-slightly. ilmoro, we are indeed busy filling in applications to open new Property Crowd ISAs, how did you know? Uncanny. Quick update guys, after day 1, we've raised £200k of our targeted £1.7m, and virtually all of that has come from existing investors. A massive vote of confidence, for which we are honoured and humbled. Thank you all for the support!
|
|
