Project – Pre -Development to obtain Planning to allow for development of site/property.
Team – The Project will be assessed and delivered by an UpSPACE led and assembled design team of vetted UpSPACE collaborators.
Client – The client in this instance will be a site or property owner who has signed up with UpSPACE to develop a project that has been prequalified by UpSPACE as having development potential.
|Borrower||Site or Property Owner with Development Potential|
|Security||A first collateral charge over the property listed above. A first charge over the shares in the borrower company. An SPV will be formed to manage this development loan.|
|Facility Amount||€25,000 – €125,000 depending on size of project|
|Total Asset Value||€000|
|Interest||10% per annum|
|LTV (Loan To Value)||Less than 5%|
|Term||9 – 18 months|
|Repayment||Refinance once Planning Permission has been secured|
This is a pre-development loan secured to facilitate the development of a site/property with potential and to prepare the project for development/construction. The loan is to secure planning permission in order to allow for the development of a site/building which has potential.
The proposed loan term has a maximum term of 18 months and a minimum interest period of 9 months. This means that lenders will receive at least 9 months’ worth of interest payment even if the Property sells and the loan is repaid before the expiry of the 12 month term.
The loan carries an interest rate of 1.2% per month which is the equivalent of 10% per annum.
The loan is secured by a charge over the Site and Developed Residential Property and by a charge over the shares in the Borrower company. This effectively gives the lenders the right to sell the Property if the loan is not repaid at the end of the loan period.
UpSPACE have 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 will be an SPV that has been assembled by UpSPACE on behalf of the owner in order to develop the site and the project. UpSPACE will project manage the development team.
We will seek its incorporation documents as part of our legal due diligence and our security will include a charge over the shares of the company allowing us control in the event of default.
As there is no prior trading there is no trading, profit and loss or financial position to consider.
The principal security for this loan is a charge over the Residential Property and the Commercial Property and by a charge over the shares in the Borrower company.
The Proposed project will be assessed for economic feasibility and for planning practicality. In all instances projects will be in keeping with Local Area Development Plans and Local context.
The Property location details will be published at the time of the loan offering.
Term and Exit
It is proposed to have a term of 9 – 18 months on this facility.
In regards to the exit, the Borrower will seek to refinance the project on successful planning with a view to developing the project out for sale which will allow for the ultimate exit.
This is a development facility secured against a property. The following factors make this a strong investment;
– The investment is for 9 – 18 months but has a minimum term of 9 months guaranteeing a minimum return of 10%.
– UpSPACE has assembled a development team headed by a project manager with extensive experience working with UpSPACE collaborators on the design team who have all myriad experience on similar projects.
– Our assessment will insure that the project is feasible before it is offered for funding to the UpSPACE Crowd Funding community..
– Strong security where should the Borrower fail to secure the planning permission the loan facility will not be made available.
Please refer to the Facility Agreement for a full disclosure of terms.