A member of the Property Bridges lending team visited the Ballinamore site on Wednesday the 21st of April as part of their ongoing monitoring of the development.
As a reminder, the Originator has raised 4 tranches for Ballinamore, totaling €881,941.50. They expect to raise the final tranche of funding on Friday to complete the project. Upon completion, all 9 units will be handed over to Leitrim County Council to be used for social housing.
The borrower, Church Lane Passive Housing Ltd, has remained on schedule despite the lockdown restrictions.
In what was a tight site the borrower has managed to complete all the externals and continues to finish the final units.
Site clearance, demolition, foundations, and all slabs are complete.
External walls, Roof structures, and roof finishes are 100% complete on all units.
Windows & Doors are installed to all units, internal walls are well progressed throughout and Kitchens have been fitted to Units 4, 5, 6, 7, 8 & 9.
The key items remaining on the site are as follows;
Connection to Irish Water (scheduled for this week).
Complete the tarring, roadworks, footpaths, and lighting.
Snagging of all 9 units.
The development remains on course to complete within the final repayment date which is October of this year.
Pictures of the progress have been added.
Risk Rating
Criteria
From a+ to d
Project rating
Macro Location Analysis
C+
A-
Originator rating
B
EvoEstate Risk rating is of
an informative nature only
& can not be considered
investment advice.
Financial Cost
C
Loan To value
A+
Purpose of the loan
B+
Development's licence
A+
Borrower's experience
A+
Presales
A+
Guarantees
A+
Descripton
Offering Description
Overview
Borrower
Church Lane Passive Housing Ltd (the “Borrower”)
Property
9 residential units on a site in Ballinamore, Co. Leitrim (the “Property”)
Security
First Legal Charge over the Ballinamore site, and all works on the site
Facility Amount
Tranche 4: €75,163
Total Facility: € 1,000,000
Total Asset Value
Site Value: €1,565,000
Interest
7% per annum
Purpose
Development Facility
LTV (Loan To Value)
64%
Term
6 months (3 months minimum)
Loan Overview
The Borrower is an SPV set up by Drumattan Construction Ltd, which is a well-known and respected construction/development firm in the north midlands area. This is the third tranche that is funding €75,163 of this facility of €1,000,000 at an interest rate of 7% per annum. The term of this offering is 6 months (3 months minimum term), secured against the Property. The Borrower requires this facility to develop 9 residential units on a site in Ballinamore, Co. Leitrim which Leitrim County Council have advised they will purchase and for which a contract will be entered into shortly. The Borrower has been working on the site since the Covid guidelines were relaxed for builders. They have foundations laid for all 9 of the 9 units, and they are up to ground floor wall level on 6 of them.
The interest rate for lenders on this loan is 7% per annum. We will take a charge over the Property. Our LTV (Loan To Value) will be 64%.
Our security for this facility will be a First Legal Charge over the Property, and all works on the site, and a Floating Charge over the shares of the Borrower.
Risk Warning
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.
The Borrower
The Borrower is a company set up by Drumattan construction, who are a Co. Longford based construction company. They have completed projects throughout the north midlands. They propose to use the funds from this loan facility to develop 9 units on the site and have contracted to sell to the Leitrim County Council.
Security
The loan will be secured by a First Legal Charge over the Ballinamore site, and all works on the site and a Floating Charge over the shares of the Borrower.
Property
We have not commissioned a valuation on the site as the Borrower has agreed to sell the 9 units to Leitrim County Council, with a Contract to follow shortly. The Borrower has been on site since Covid restrictions were lifted from building sites.
The QS we appointed has fully reviewed the cost plan and schedule supplied by the Borrower. They have confirmed the costs are tight, but achievable, and that all the design parties (Architects & Engineers) have the experience and insurance levels to complete a project like this.
Progress on site has been good, with 6 of the 9 units at ground floor level and the majority of groundworks have now been complete.
Location
Ballinamore is in north County Leitrim, on the Shannon Erne waterway. It had a population of 914 in 2016 population. The Property is located 200 meters from the main street in Ballinamore.
As in the rest of the country, there is a significant demand for social housing in south Leitrim. As part of Leitrim County Councils' response to the demand, they have advised that they wish to purchase the 9 houses when they are completed by the Borrower.
The houses will have 2 bedrooms and will be 900 sq ft in size. They will meet all building regulations, and be fitted out as per the Council's requirements, including air to water heating and A rating.
Term and Exit
It is proposed to have a term of 6 months (maximum) and 3 months (minimum) on this facility. This will allow them to develop the property and transfer it to Leitrim County Council.
Conclusion
The Borrower has requested a development facility of €1m to part-fund the construction of 9 units which Leitrim County Council have advised they will purchase.
The Borrower is a well-regarded builder/ developer in the north midlands area, with a history of completing small to medium housing developments, similar to this one, to a high standard.
Given the strength of the security, the quality of the Borrower, and the level of construction already completed on site, we are happy to recommend this facility.
Please refer to the Facility Agreement for a full disclosure of terms.
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Documents
Payment schedule
Date
Status
Late
Assignment date
25.10.2021
No
-
Invest in Tranche 4 - Ballinamore Social Housing,Ballinamore, Ireland
Amount €
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25.10.2021
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