288 000 €
Type: Purchase Loan
Mortgage rank: First
Interest payment schedule: At Project Completion
Min. amount of investment - € 0
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.
|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
Tinley Investments Ltd (the “Borrower”)
13 Frankfield Terrace, Cork City (the “Property”)
A first collateral charge over the Property and the property knew as 3 City View Way, Co. Cork with a combined value of €525,000 (the “Secured Property”)
A first charge over the shares in the borrower company.
Total Asset Value
7.5% per annum (paid on completion)
Acquisition of the Property
LTV (Loan To Value)
24 months (14 months minimum)
We're raising €288,000 to assist our client to acquire 13 Frankfield Terrace in Cork City. The borrower will be using his own funds to reconfigure and fully refurb the property. Once the property has been fully refurbished and rented the borrower will refinance by way of a buy to let mortgage.
The Secured Properties are valued at €525,000 by a qualified valuer on 31 July 2020 and the bridging loan sought is for €288,000 or 55% of the valuation.
The Property consists of a three-story terraced period property, which the Borrower is purchasing for €320,000 and will seek a refinance at the end of the term.
The proposed bridging loan has a maximum term of 24 months and a minimum interest period of 14 months. This means that lenders will receive at least 14 months’ worth of interest payment even if the Property sells and the loan is repaid before the expiry of the 14-month term.
It is most likely that the Borrower will hold the Secured Properties for the long term and will refinance this debt at the end of the term. The Borrower will fund refurbishment work to 13 Frankfield Terrace, from its own equity. This property had last been used partially as office space, so some work will be required to convert it fully to residential.
The loan carries an interest rate of 7.5% per annum.
The loan is secured by a charge over the Secured Properties and by a charge over the shares in the Borrower company. This effectively gives the lenders the right to sell the Secured Properties if the loan is not repaid at the end of the loan period.
Property Bridges has compiled this report on behalf of our lenders and have taken reasonable care to ensure the information provided is authentic and accurate. Please be aware that returns are not guaranteed, and your capital is at risk. Please also note that the term is not certain and may be extended under certain circumstances. Investors should seek their own advice before investing.
Tinley Investments Ltd is a developer which is based in Cork and has commenced sourcing properties in the Cork city area which are located in areas that have strong rental demand. The Borrower will then hold these properties for the long term, with our debt being refinanced by a long-term mortgage.
The principal security for this loan is a charge over the Secured Properties and by a charge over the shares in the Borrower company.
The Property comprises a three-story terraced period property and joins part of a group of 20 adjoining terraced houses. Summerhill South is predominately an area of 19th-century terraced houses, many of which are protected structures. The terraced properties on Frankfield Terrace were built circa 1885 – 1890 and are constructed of red brick walls with an ashlar limestone string course and terracotta dressings to open. The roofs are pitched slate with segmental-arched window openings and red brick chimney stack.
Our Valuer has visited the property and confirmed that the purchase price of €320,000 is the market value of the Property. The Valuer has advised that the estimated rent for the property in its current state is €1,800 to €2,000 per month, and when the work that is proposed to be carried out by the Borrower is complete, this will rise to c.€2,500 per month.
Properties comparable to the Property in the area include;
13 Frankfield Terrace, Summerhill South
The subject property in question for the purpose of this valuation. Active bidding on the property confirmed with 11 bids in total starting at €275,000
13 Friars Walk, Cork City
Three-storey 4 bedrooms mid-terraced property in need of refurbishment and modernization. The property is in a directly comparable location.
Source: Sherry Fitzgerald
6 Roseneath Villas, Military Road, Cork
Three-story Victorian residence in need of upgrading and modernization. The property has 5 bedrooms.
Source: REA O’Connor Murphy
35 Evergreen Buildings, Evergreen Street, Cork
2 bedroomed 2 bath terraced property. This property has been fully modernized and renovated throughout
Source: James G Coughlan
3 Elizabeth Place, Southern Road, Cork
2 story terraced period property in need of full refurbishment and upgrading.
148 Deerpark, Greenmount, Cork
4 Bedroomed 2 Bath end of terrace modern property.
163 Deerpark, Greenmount, Cork
4 Bedroomed 2 Bath end of terrace modern property.
Source: Timothy Sullivan & Associates
6 Ros Barra, Deerpark, Greenmount, Cork
4 bedroomed 3 baths semi-detached modern property.
Source: Cohalan Downing
16 Frankfield Terrace, Summerhill South, Cork
The three-story red-brick terraced property, Overall, the property is in superior condition, which is reflected in the price. The agent has confirmed a good level of interest to date.
Source: Jeremy Murphy
Details of the second secured property known as 3 City View Way, Co. Cork
The second secured property known as 3 City View Way, Co. Cork comprises a two-story three-bed semi-detached property that forms part of a larger housing scheme. Two bedrooms of which are double with ensuite bathrooms. The property is of standard concrete construction with a pitched tiled roof and PVC double glazed windows throughout. The external aesthetic of the property is finished in half red brick and half pebble dash façade.
There is a large south-facing garden to the rear of the property. The property benefits from side access which also accommodates an off-street car parking space. There is no garden area. The overall site measures approximately 0.1 acres.
Our Valuer has attributed a value of €205,000 to this property and has confirmed the rent that is being paid of €1,400 per month is at market levels.
Properties comparable to 3 City View Way, in the area include;
Foinavon, 5 Meelick Park, Ballyvolane, Cork
3 Bed 1 Bath semi-detached in excellent condition throughout. This property is located in a directly comparable location to our subject property.
Source: Coldwell Banker
Samara, 35 Mervue Lawn, Ballyvolane, Cork
3 Bed 1 Bath semi-detached property. The property is located in a nearby comparable area. Overall the property is smaller than our subject property but in superior condition throughout.
Source: Michael McKenna
4 Silversprings Court, Silversprings, Cork
3 Bed 2 Bath semi-detached property. The property is located in a nearby comparable area. Overall the property is smaller than our subject property but in superior condition throughout.
Source: Timothy Sullivan & Associates
83 Mervue Lawn, Ballyvolane, Cork
3 Bed 1 Bath semi-detached property in a directly comparable area.
Source: Angela Walsh Property
24 Boherboy Close, Mayfield, Cork
3 Bed 1 Bath terraced property. This property is considerably smaller in size but has been well maintained to an excellent standard throughout.
Source: Thomas J O’Driscoll Auctioneers
8 Hillside, Banduff Road, Mayfield
3 Bed 2 Bath semi-detached property in a similar location. This property is in a superior condition to our subject property.
Source: Murray Browne Auctioneers
Planning will be examined as part of our normal legal due diligence but the Properties are currently used for residential purposes – and we do not expect to encounter any issues around planning.
Term and exit
It is proposed to have a term of 24 months on this facility.
There is a built-in 14-month minimum term therefore even if the property were to sell immediately and close within a normal 1 to 2-month timeframe all lenders will earn the equivalent of 14 months interest.
In regards to the exit, the Borrower will seek to refinance the deal, with a long term mortgage when the property has been refurbished and fully let.
The Secured Properties are valued at €525,000,000 by a qualified valuer on 31 July 2020 and the bridging loan sought is for €288,000 or 55% of the valuation.
This is a bridging facility secured against two properties. The following factors make this a strong investment;
Please refer to the Facility Agreement for a full disclosure of terms.
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