We are raising €300,000 in the second tranche of finance for our Pallaskenry development. This will allow the developers to complete the bulk of the works on the first phase of 8 houses. The loan is repaying 8.5% per annum with an LTV of 69%. The loan is secured by first charge against the development site and works done to date.
This offering will close for funding in 1 week on Monday the 26th of August.
Tranche 2 Overview
- Interest rate: 8.5% per annum
- Security: First Charge
- LTGDV: 69%
- Term: 14 months
- Minimum Term: 6 Months
- Final Repayment Date: November 2020
- Amount: €300,000
- Exit: Sale of properties
The purchase of the site was completed in early July, with the Builders moving back on site the week commencing the 15th July. Since then they have made significant progress on site, despite the best efforts of the weather.
Foundations and ground floor slabs have now been completed for all of the first phase of eight houses. Six of the houses have their ground floor walls complete, with two houses having their first floor slab installed and first fix electrical and plumbing finished on the ground floor. The expectation is that the ground floor walls for the final two houses of phase 1 will be in place in the next 2 weeks, weather permitting.
Across the site as a whole, site grading and the stone-based roadway is now 75% complete. The Building Control Department from Limerick Council has visited the site and were positive about the works completed to date.
Up until this point, the borrower has not been actively marketing the site, however, this will change in the next 3 weeks, when it is expected that the first two houses will be completed up to and including roof level. At that point, it will be much easier for potential purchasers to appreciate what the development offers.
The latest repayment date for the loan facility is 8th November 2020.
As a Reminder
Pallaskenry is a scenic village 20 minutes away from Limerick’s main business hub, the Raheen business park. Raheen is home to some of the world’s best companies, Dell, Regeneron Pharmaceuticals, Stryker, Analog Devices and ON Semi-Conductor.
The borrower is a highly experienced developer from Co. Limerick. They have requested a development facility of €2.4m for a period of 16 months (6 months minimum), secured against a site that they are currently developing. These funds will be used to construct 16 houses in Pallaskenry, Co. Limerick.