Tower block refurb, Ch.H. New Brighton, Wirral DEFAULT (FS)

Excellent.

See the following line has been added to the new loan - "In the event of a default that loan would have priority."

It is filling surprisingly fast considering how slow the original filled

I don't know exactly when the '2 Bristol Properties' loan being renewed right now was repaid, but that would have put something like £800k back into the accounts of the investors who didn't opt to renew their investments.  With few other investment opportunities, the New Brighton tower block development loan was bound to attract some of that money.

rs:  This is a question I have all the time, and it's an area where fundingsecure communication is severely lacking.  If a development loan needs a further tranche, there's often a progress update given in the new tranche description.  But FS don't bother to add that info to any of the earlier loans on that property.  Once the last tranche is disbursed, no further info tends to appear until a loan becomes overdue or is renewed. 

It isn't uncommon for a loan to be nearing maturity and have no updates at all.  Which is particularly uninformative when the original loan description says the borrower is going to request PP, for instance.  Did they apply?  What has been the response?  Or when the exit plan is to refinance.  Has the borrower made any progress on that?  Are they even trying?

You could try asking your questions directly to FS by email.  If they know anything, they'll probably tell you.  But if they have a procedure in place for monitoring their loans, they haven't made that clear to investors.  I get the feeling that they're treating property loans similarly to the way they treat pawn loans -- once the loan is made, it can be ignored until the term is up, at which time they try to contact the borrower to ascertain whether they're going to repay or renew the loan, or whether FS are going to need to start a recovery procedure.  That might be a reasonable approach for small pawn loans, but ISTM that large property loans need much closer monitoring.

There are brief updates as to progress on the "Assets" tab on the renewal loan due to go live tomorrow.

After the London fire, the developer put out a press release which as well being general promotional guff (link in DD Central), did say they were fitting sprinklers to every floor even though there was no requirement to do so. The press release also includes a photo of the impressive view from the upper floors across the Mersey to Liverpool.

Heavens..its like the Stasi..but I suppose by now I should have realised that should have gone where you've put it..'L' plates still required it seems 

Oh I missed that video Roger never mind the photos on the update look like the work is getting on ok. I think i will invest some in this tomorow especialy as its a first charge not the devlopment tranche. Thanks for all the information evryone.

harry g

Over exposure to the borrower's projects is one consideration (see thread Are all the Liverpool / Birkenhead loans linked? ). Many of the projects show minimal signs of progress, as the effort appears to be concentrated on this one and Llandudno.  Fairly obviously with such a huge debt pile the interest payments are pretty substantial.