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Post by df on Oct 9, 2018 4:48:57 GMT
Wouldn't touch it personally. -Already a list of delays and excuses on the renewal, no real progress made. -The multiple loans/securities situation looks like the borrower is already in financial difficulties. -Single high price ticket property is always going to be hard to value accurately. -No planning permission on the base phase+Would I want views of a holiday park from my £3M clifftop mansion? There are much better loans available than this one... Thanks. I was attracted by the 50% LTV but it's likely coming out of thin air (or nice cheque to the valuer) so I won't put my £ in! It works, advertised low LTV's attract investors. I wish there was some regulation to oblige VR's to produce the real value of security... Previous LTV for this loan was 70%, now it is 55.3%. The initial facility was £1,015,000m. In order to get more funding the site has recently been re-assessed to yield a gross development value (GDV) of £3,000,000. According to VR the current market value is 2,600,000 and projected market value (if the project is completed and someone wants to buy it) is £3,350,000. Whatever "market value" may be, when the security enters an auction the value usually plummets.
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adrian77
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Post by adrian77 on Jan 1, 2019 13:34:08 GMT
had another look at this one - can anybody comment on the works progress actually made
- I find the attached file very confusing but it looks to me as if only preliminary site preparation has been done?
I thank you.
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Post by sunburyjane on Jan 1, 2019 14:26:52 GMT
I understand they have a top notch team from Whitehaven in charge. FS haven't visited the site yet but they have complete faith in the verbal updates they have received.
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dApps
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Post by dApps on Jan 1, 2019 20:35:21 GMT
had another look at this one - can anybody comment on the works progress actually made - I find the attached file very confusing but it looks to me as if only preliminary site preparation has been done? I thank you. Fairly standard reporting for fixed-price contract work: agreed activity with agreed charging structure per unit and associated amounts, and then how much of each activity has been completed and billed. It shows only very minor prelims have been done which is why the 'bill' is only £10k (out of a £520k contract.) For anyone in the loan(s) it might be worth keeping an eye on the construction company's FB page. They have a post for the Quarry from late November announcing commencement (ties in with the progress / billing paperwork) and it appears they are in the habit of posting progress updates and photos for (all?) their contracts.
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sarahcount
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Post by sarahcount on Jan 10, 2019 20:34:25 GMT
A glimpse into the future...
"Planning permission for the replacement of the two office/reception buildings was granted at Committee on 18/12/2019. Whilst not yet reflected on the Sedgemoor planning portal, it can be seen on the committee minutes."
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adrian77
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Post by adrian77 on Jul 2, 2019 16:11:15 GMT
latest tranche now on market
FS state
Granted this one is out of my league but I really don't agree with the above - well for my much cheaper projects anyway. Welcome a second opinion on that one.
They also state it is the 6th tranche - I thought it was the 7th and that is excluding the base tranche to pay for the land
The first 2 tranches are already late viz £700K + £830k = £1.53m. If these 2 alone end up being 12 months late that is £300K in interest at 20%.
I also note all tranches have equal interest and priority.
Personally I think this borrower is burning up borrowed money far too early in this project - we all know how similar expensive builds went e.g. Wimbledon and Knaresborough. I hope things come good for this chap and FS investors but I worry there will be further delay and all profit will be swallowed up in escalating interest. He may find an interested buyer and get a quick sale for the asking price but he may not...I tell you if this was one of my projects I would not sleep at night but you've got to spend to accumulate!
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james21
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Post by james21 on Jul 2, 2019 16:53:33 GMT
Well its overrunning, to be fair FS detail the reasons but over run will add interest costs and thats not good for the developer and adds risk for the lenders, all the lending is not done yet, would not be surprised to see a supplementary loan before its all said and done. I am in it. The docs show a overhead and profit margin of 7% roughly £100k, which may well get used up in the interest overrun, he will hope to make his margin on the sale price. Better get a move on
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petrichory
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Post by petrichory on Jul 2, 2019 19:55:17 GMT
It is clear that FS is at it again, materially changing the terms and conditions of a loan without the prior content and approval of lenders.
FS does have the option to defer enforcement of a loan but blatantly saying that they will not even CONSIDER enforcement and turning a 6-month loan into what is effectively an open-ended loan is clearly not what lenders signed up for. Misselling at its finest, a casual and lazy affront to lender confidence.
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Post by df on Jul 3, 2019 19:22:59 GMT
New update: "We have asked the borrower and broker to schedule a meeting in the next few weeks to discuss all of the projects funded by funding secure to gain a further understanding of the current status of the project costs, sales and marketing. An update will be posted once the information is received." - I wonder what was the outcome of the meeting scheduled in April?
I looks like FS is now trying to target more competent investors (i.e.increasing minimum bids), but would those who conduct comprehensive DD be happy with inconsistent updates on existing loans?
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adrian77
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Post by adrian77 on Jul 4, 2019 5:04:15 GMT
I am really not happy with this one - I note the first tranche is already 4 months late and yet FS are releasing more tranches at the same rate viz 13% . This one has SM loans for sale at a discount and yet the last tranche filled...however as I see it the early investors are disadvantaged for 2 reasons
1) the original loan said the facility was for £1.015m but this has been surpassed so unless the final value increases more than the additional funding the profitability of this development goes down
2) if this one fails to come good (as I suspect it will) then all lenders will take the same hair cut but the early investors will have their money earning negative interest for a longer period of time...
it is one thing for an office block to be at the base of a quarry but not so sure this is an ideal site for a luxury home?
just my thoughts
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Post by brummiefred on Jul 4, 2019 8:24:14 GMT
The property will be sizeable (being 4 bedrooms, 4 bathrooms) with views across the Bristol Channel and just 5 minutes from Cheddar Gorge.
Not in the base of the quarry, that's a separate development for log cabins.
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adrian77
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Post by adrian77 on Jul 4, 2019 9:29:33 GMT
I accept the front views are fantastic but the back ones don't look too good to me!
The report says the valuer can't confirm the build costs - £325K. I don't build luxury houses but the estimated costs seems extremely low to me for a standard, let alone luxury build. Not saying it can't be done but I sure could not build this house for that price - in fact it would be double!
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criston
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Post by criston on Jan 20, 2020 17:20:28 GMT
This is one of a handful of loans I have.
I have been trying to find any information on the situation with the build, but no luck.
Can anyone help?
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pfffill
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Post by pfffill on Jan 20, 2020 18:00:41 GMT
I am in several tranches of this, my last being T8. I don't know how many came after T8, but they all rank first charge equally. I have a note on my tiny holding of T8, updated by CG in the last week or two, that the T8 loan is expected to end on 29/01/20. However, none of my other tranches, in which I am far more heavily invested, have been assigned similar end dates.
Make of that what you will.
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mikes1531
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Post by mikes1531 on Jan 20, 2020 18:14:27 GMT
This is one of a handful of loans I have. I have been trying to find any information on the situation with the build, but no luck. Can anyone help? For anyone in the loan(s) it might be worth keeping an eye on the construction company's FB page. They have a post for the Quarry from late November announcing commencement (ties in with the progress / billing paperwork) and it appears they are in the habit of posting progress updates and photos for (all?) their contracts. Does anyone know if the FB page mentioned above still exists? If so, has it been updated recently with any info about this project?
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