Project update

Update from the originator: 

Tramore Development offering is now due for repayment, however, due to delays caused by Covid-19 and the slow down in the supply of construction materials the Borrowers (S.E. Construction (Kent) Ltd) have requested an extension of the Facility until the 31st January.

The delay on-site has been caused by issues outside of their control. With regards to matters that they can control the originator is happy that everything is in order. The proceeds from the sale of the next 6 houses will be used to repay our Facility a further 12 houses are due to be completed by March of next year. The sale of all 18 houses is fully contracted. The Loan To Value is 28% against the contracted sales. The originator team has visited the site and they happy that the next 6 houses, which will be used to fully repay our Facility, are practically complete, with the next 12 houses at various stages of construction. The Borrowers have the adequate cash flow to fund the remaining build costs for the 18 houses.

After the review of the Borrowers request, the originator has agreed to the Facility be extended to the end of January 2022 for repayment.

Interest on this Loan Facility continues to be funded by the Borrower.

Update from the originator:

A member of the Property Bridges lending team visited the Tramore site on Tuesday the 20th of April as part of their ongoing monitoring of the development.  

As they mentioned in earlier communications this site was closed during lockdown but it has reopened and they observed very high levels of building activity on their visit.

All of the 69 houses have now been sold with the majority having signed contracts for sale. The next significant milestone is that 8 of the houses No’s 71-74 and 81-84 will be handed over in June. Our current balance outstanding is €1.35m out of a total facility of €2m. 

The final houses are scheduled to sell in November and December at which point our loans will be repaid in full. The lockdown is likely to mean that the loan repayment may be a couple of weeks behind our original schedule but at this stage, we are satisfied with both building progress and the excellent progress in selling all the houses.

Click the link below to see a video of the site taken this week. You'll see the advanced state of construction and high levels of activity on the site.

https://www.youtube.com/watch?v=XppjSv27vrc

Update from the originator:

It was extremely disappointing to learn that the level 5 lockdown will now be extended to the 5th of April as the government announced yesterday. Construction, like many business sectors, will feel the impact of this recent decision. The positive news for the sector is that essential construction remains open, albeit with restrictions.

The originator's lending managers are working closely with the borrowers and site monitors throughout the lockdown and the originator is pleased to report that the vast majority of the loans will remain on schedule. However, the site closures as well as restrictions on sites that remain open will inevitably lead to some delays. In the event of a delay, interest will continue to accrue for lenders and the originator would ask lenders to bear with the originator as the originator will allow borrowers some extra time to repay their loans.

The site is closed until the 5th of April.

As lenders are aware, the majority of the houses in this development are being sold on the open market, accordingly, this site remains closed during the lockdown. The build and sales program were well ahead of schedule prior to lockdown, with only 3 houses of the original 69 houses remaining for sale. The originator is confident in the ability of the Borrower to finish out the development, however as this site will remain closed until the construction lockdown ends, this may affect their ability to repay the loan by the repayment date of 18th November next. The originator will continue to monitor this project and will advise lenders of any potential delays as the year progresses.

Update from the developer:

The vast majority of the units on this site are being sold on the open market, accordingly, the site will be closed during the lockdown. Sales have been very strong on-site, with only 10 of the original 69 units remaining for sale. The rest have either been sold or are in various stages of completion. 13 units were handed over to their new owners in the week prior to Christmas. The view of the Borrower is that the site being closed for January, one of the worst weather months of the year, will have little impact on the completion of the development.