Case Study: London SW4 & SW18 May 2016

For more information please call +44 (0)203 397 8290, email us at [email protected] or visit www.proplend.com

London SW4 & SW18 Offices Proplend Case Study

Retail OfficeIndustrial

MAY 2016


Executive Summary

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The London Lion Yard SW4 & Wiltham House SW18 Loan was drawn down bythe borrower in May 2015. The £700,000 loan represented a 55% Loan toValue (LTV) and was secured with a first legal charge over the properties.

The Loan remains in Active Good Standing, with no late or missed payments and 12 months left on the loan term.

This Loan Investment has offered attractive returns to all investors over the past year, and to date investors have received a total of £38,908.80* in interest.

*Total amount paid net to lenders assuming May 23rd, 2016 interest payment is complete.Assuming interest is not re-invested.

Halfway through its two year term we look at the details of the Loan andreview its performance to date.

Tranche A Tranche B Tranche C£34,473.60* £4,435.20* N/A


The Borrower is an experienced individual who owns and manages aportfolio of commercial and residential investment properties. The propertiesincluded in the Loan Investment are two office buildings in London, SW4 andSW18.

The Lion Yard SW4 property is a three storey office building totalling 2,048 sq. ft. in Clapham, London. The entire property is currently let to three tenants on individual 5 year FR&I leases producing a total rental income of £60,600 per annum.

The Witham House SW18 property is an end ground floor office unit totalling 1,405 sq. ft. in Wandsworth, London. The entire property is currently let to one tenant on a 5 year FR&I lease producing a total rental income of £36,000 per annum.

The combined annual income is £96,600. The interest expense is £43,232,giving an interest cover of 2.23x.

Borrower & Properties

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LOAN

The Loan of £700,000 represents 55% LTV for a period of 2 years commencingMay 2015. The exit strategy remains the same, which is that in 2017, the loanwill be refinanced – either at Proplend or another institution.

The Loan covered two tranches as follows:

Tranche B: 8.00% pa*Tranche A: 6.00% pa*

*Before fees, bad debt and taxes

SECURITY

ü The Loan is supported by a first legal charge over the properties.

ü Six months of interest (£21,616) was retained at drawdown from the gross loan amount.

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Loan & Security


Proplend aims to align itself with its Lenders by only charging a fee wheninterest is collected and paid into their Lender Account, the net annual rates(after fees) are as follows:

Tranche B: 7.20% pa*Tranche A: 5.40% pa*

*After fees but before bad debts and taxes

If you had invested £25,001 in this Loan at the In Funding stage, your NETreturns to date would be:

Please note that investments made through Peer-to-Peer Lending platforms are notcovered by the Financial Services Compensation Scheme (FSCS) and so your capitaland interest are not guaranteed. Savings rate used is 2.0% (AER)** and is for comparisonpurposes only. Tranche returns are shown net of fees but before tax. Capital is returnedas a bullet payment at the end of the tem.

**State Bank of India 2% (AER) source: www.moneysavingexpert.com

Investor Returns

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Although the Loan is monitored monthly, Proplend conducts an Annual Review of all loans listed on the platform. The Annual Review for London SW4 and SW18 Offices was conducted and published in May 2016, one year after the Borrower drew the loan down and is available in the documents section of the platform.

There were no material changes to the property, the tenant or the Borrower’s circumstances, and the Loan remains in Active Good Standing with no late or missed interest payments.

For full details of the Annual Review please LOGIN to your Proplend Lender Dashboard and go to the Documents section of the London SW4 and SW18 Offices Loan Investment.

Annual Review

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For more information please call +44 (0)203 397 8290, email us at [email protected] or visit www.proplend.com6

Contact

Contact Details:

Brian Bartaby – Founder & [email protected]

Benjamin Butterworth – Head of Lender [email protected]

Office+44 (0) 203 397 8290

DISCLAIMERProplend operates a peer to peer lending platform specialising in commercial property loans supported by first charge mortgages. Whilst loan investments are secured against property, capital is still at risk and therefore Proplend lenders face the possibility of losing money. Investments in commercial loans are long term in nature and may not readily be realisable.

Proplend Ltd is incorporated in England and Wales registered number 08315922, registered address 145-157 St John Street, London EC1V 4PW. Proplend Ltd is authorised and regulated by the Financial Conduct Authority (firm registration no. 662661). Lenders on Proplend and other P2P platforms are not covered by the Financial Service Compensation Scheme.

If you are in any doubt as to whether lending on Proplend is suitable for you, we recommend that you seek independent financial advice.

Case Study: London SW4 & SW18 May 2016

Economy & Finance

Transcript of Case Study: London SW4 & SW18 May 2016