Update from the originator: Due to persistent problems with the English land registry, it was not possible for Corbelo Group to sell their properties, because they were simply not registered in their name. The delays have created cash flow problems, causing interest payments to fall behind. These delays still apply, but between now and the 31st of July, 2022, 9 property transactions will be completed. Through the sale of these properties, Corbelo Group will receive sufficient funds to meet all outstanding interest payments up to and including the 30th of June. From July 1st, 2022, all Corbelo Group loans will be changed to a "full bullet loan". This means that the interest and capital repayment are paid at the end of the term. This way, Corbelo can use the proceeds (profits after interest and capital repayment of course) from the sale of the 9 properties and also the proceeds from the sale of the other properties to complete the renovations faster and make up for delays. The originator has chosen this solution to prevent the Group from ending up in the same situation again in a few weeks. As you know, the originator has the first right of mortgage on the properties and this will remain the same. The reason the originator has made this choice and is not currently executing on the securities is because the discussions with the Corbelo Group have been amicable and transparent and there are more than sufficient profit margins on the projects. Executing the securities may also take longer than the term of the loans and there is the potential of loss of capital for the investors since the profits are achieved because of the renovations, letting out and sale of the renovated project. The property developer, Challon Smith, will soon be recording a video explaining the above and once the originator receives it they will share it with all investors.
|Criteria||From a+ to d||Project rating|
Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Loan To value
This project is located at 26 Westwell Street, Darwen, BB3 0HP, a good area within East Lancashire. The property developer has done over 240 of these projects with the same social housing provider over the last 4 years and has a large pipeline for these types of deals coming through.
The developer has agreed the onward sale before he himself buys it, therefore giving great security on exit. Proof of the onward sale and the ID of the purchaser have been submitted to Max Crowdfund, but due to GDPR we cannot share the personal information publicly.
The developer also has their own construction teams in house who consistantly deliver 4-7 finished refurbishment projects every month of this type. The property will be subject to an extensive refurbishment programme to bring it to a high standard in line with the requirment of the social housing provider. As soon as the refurbishment is complete, the onward sale will have been progressed in the background and will be ready to exchange and complete immediately.
The loan will be paid out to the solicitor’s bank account to purchase the property and establish the legal charge, after which the remainder will be made available to fundraiser.
A first rank mortgage valued at € 157.000 will be established on behalf of investors to secure the loan. This value is calculated from the lowest from (A) loan amount, a minimum of 2 years interest and 10% coverage for execution cost (€ 169,000) or (B) agreed sales price (€ 157,000). This results in a loan to value (LTV) of 82.8% and a Total Loan Coverage (TLC) of 120.8%.
Corbelo Capital LTD has a C rating from Creditsafe, indicating a moderate risk. The identified risks are estimated as limited. The project owner is confirmed to be very experienced in real estate investing. This loan has been assigned a score of C on the basis of the risk analysis.
Below mortgage will be established on behalf of investors to secure this loan.
|TYPE OF PROPERTY||MORTGAGE RANK||AMOUNT||LC|
|Renovation not completed on time / within budget.||Low||The project developer has a detailed business plan and fixed renovation quotes. Risk considered to be low and sufficient slack in timeline and budget to cover for any setbacks if they may occur.|
|Currency risk.||Low||The loan is in Euro and as the property is located in the UK, everything is in GBP. The currency exchange risk is borne by the fundraiser.|
|Economic downturn could affect property market/values.||Low||Given the area, this risk is considered to be low. The project owner is flexible in terms of exit strategy.|
C/O Alexander and Co Centurion House, 129 Deansgate M3 3WR Manchester United Kingdom
Corbelo Group Ltd
Message from fundraiser
After university, I moved straight to London where I found a role in an estate agency which is where my property career began. During my years at the estate agency, I learned everything from accounting, staff management, lettings, sales, negotiation, business growth and marketing. I knew I wanted to learn and grow with the intention of getting into property development.
My passion is in the North of England where I can make a real difference in the housing community and where there is a huge demand for good social housing. In the first lockdown, I quit my job having realised my specialism was social housing. In the last 15-16 months I started my own thing full time, namely ‘The Corbelo Group’. I have completed over 65 social housing projects, several pub conversions and two commercial to residential conversions. I now have a small team of people, which is growing substantially at the moment and we are flying through our targets. As a company, we know exactly what we are doing, we have the best people supporting us, we have mitigated every risk we possibly can and have a very clear path on what we are doing and how we will achieve what we have targeted.
The Corbelo Group consists of the following companies; Corbelo Capital - buys our own assets and undertakes all flips. Corbelo Property Group - this is our sourcing company where we find property for our clients. Corbelo Construction - we have our own construction team in house. Corbelo Housing CIC - this is our newest company which is a non-profit organization, which suits my passion to provide social housing for the community.
|01.01.2022||Paid||No||25 December 2021, 11:14|
|01.02.2022||Paid||No||25 January 2022, 14:36|
|01.03.2022||Paid||No||24 February 2022, 11:25|
|01.04.2022||Paid||No||25 March 2022, 17:13|
|01.05.2022||Paid||No||25 April 2022, 17:03|
|01.06.2022||Paid||No||03 August 2022, 17:28|
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