Tranche 2 - Mooncoin Social Housing Project

Mooncoin

Offering Description

Mooncoin Development of 6 No Houses, New Road, Kilkenny.

Site Location: New Road, Mooncoin, County Kilkenny

Loan Overview

  • Security: First Charge
  • LTC / LTGDV: 70% / 51%
  • Loan Amount: €600,000

Tranche 2

  • Amount: €400,000
  • Estimated interest rate: 7.5% per annum
  • Term: 10 months with 4 months minimum

Construction Progress
Construction of the 6 houses in Mooncoin have been proceeding very well with the work in progress being completed on time and on budget. On completion of our drawdown report, we will be raising the remainder of the loan amount €400,000. Fundraising should commence on the week starting the 21st of January. These funds will be used to finish the construction project. More details to follow. 

The development program is progressing as scheduled. The podium slabs are in place, in addition to the timber frames and insulation throughout all six houses. The roof structures are in place on all six units, with the roof slate installation due to be complete by the end of January. The windows and doors are ordered and manufactured and will be delivered to site and installed in early February. Once the windows and doors are in place, and the houses are weathertight, the wet trades can then start in all houses simultaneously. This includes the plumbing, heating, ventilation, electrics, plasterboard, plaster skim coat, sanitary ware, kitchens, tiling, flooring, landscaping and decoration, amongst others.

To date the first tranche of the loan has been expended, once the required equity had been confirmed as being expended, and this second tranche will cover all costs required to reach completion and certification for handover to the  County Council housing department. The necessary certification is being prepared as the houses are being constructed so that the necessary Building Regulation Certification, Fire Certification, Structural Insurance and Energy Rating Certification are in place at Practical Completion. This will ensure a swift and efficient hand over process with the County Council.

We have been visiting the site regularly over the last few months to ensure progress is being made in line with the programme and we are satisfied that the works are progressing in line with the original programme estimate. To see how the build has been progressing, click on the video below.

Whilst the loan term is technically 12 months, we expect that the Borrower will complete and repay earlier than the full 12 months. They are required under the terms of the facility to pay a minimum interest sum equal to 6 months interest fully drawn if they repay earlier than 12 months. If they were to repay at 6 months, all lenders would receive 6 months interest at the rate advertised for the sum lent to the project. We will also have more projects available at the same or similar rates, so that you will be able to reinvest into another loan straight away to ensure that you earn as much interest as possible over the course of the year.

The Loan
The total gross loan amount is €600,000.00, of which €200,000 was raised in tranche 1 in November. We will start fundraising for the second and final tranche of the loan for €400,000 on the week starting the 21st of January. 

The borrower will receive funds in staged payments as the development progresses for work done in arrears, as certified by the QS/Project Monitor. Property Bridges will visit the site to assess the progress of the development prior to each tranche being drawn and at regular intervals to manage the projects progress.

Unit Overview
Our borrower formed as a SPV to develop two sites in Mooncoin, Co. Kilkenny. The developments will comprise of

  • Two 3 bed semi-detached houses on its site in Chapel Street, Mooncoin, Co Kilkenny.
  • Four 3 bed semi-detached houses on its site in New Road, Mooncoin, Co Kilkenny.

Loan Exit
The exit for this project is assured by way of contract for sale with Kilkenny County Council already in place, with deposit paid. The contract sale price is what has been used to calculate the project LTGDV above.

Security
The loan is secured by first legal charge against the development site which is valued at circa €220,000. The works already complete on site are in excess of the equity required, and as such it is likely that they will be ready for their first drawdown of €200k in early December 2018. The equity investment into the project to date has been valued by their QS at being in excess of €350k, and this breaks down into €126k for site acquisition and planning design, and the remainder, €174k, for works carried out on site to date.

Construction
Planning permission has been received and works are well underway as you can see from the images. The structure will consist of timber frame construction, with internal insulation and an external plaster rendered finish. Ground floors will be concrete in construction, and the roof will be a pitched timber frame, with slate tiles to finish. The BER achieved for each property will be a minimum of an A rating.

Property
The development will provide a six two-storey semi-detached houses on two separate sites. Each house will have a total gross area of approx. 100 sqM, new vehicular entrances, landscaping and boundary treatments. The properties have been designed to meet the TGD L 2011 building regulations. 

The Borrower
The borrower SPV is comprised of 3 very experienced professionals. Dermot Lyons has been in the construction business since 2001 and is the MD of the Lyons Group. He has surrounded himself with the expertise of the strongest possible professional team to ensure the success of each project.

€400,000.00

Raised Of €400,000.00 Goal

Days 0
Hours 0
Mins 0
Investment complete
 
Debt Offer. Structure
7.5% Ann. return
10 Months Term

Call 0870646791