Case Study: Essex Mixed Use May 2016

For more information please call+44 (0)203 397 8290, email us at admin@proplend.com or visit www.proplend.com
Essex - Bexleyheath & Erith
Mixed Use
Proplend Case Study
Retail OfficeIndustrial
MAY 2016

Executive Summary
1
The Essex, Bexleyheath & Erith Mixed Use Loan was drawn down by the
borrower in May 2015. The £978,000 loan represented a 75% Loan-to-Value
(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 £75,491* in interest.
*Total amount paid net to lenders as of May 23rd
, 2016.
Assuming interest is not re-invested.
With 12 of the 24 month term left, we look at the details of the Loan and
review its performance to date.
Tranche A Tranche B Tranche C
£45,479* £17,167* £12,845*

The Borrower is a local businessman and developer with two mixed use,
freehold, multi-tenant commercial properties on busy trunk roads in Essex
(Bexleyheath & Erith).
The Bexleyheath property comprises two retail units fronting the Broadway
and three storage units / open yard area to the rear that is situated away
from the main retail pitch, amongst a large tertiary mix of local traders. There
are 3 tenants (no vacancies), which yield an annual income of £53,000.
The Erith property comprises a car showroom with forecourt, an additional
car maintenance workshop to the rear, and two other buildings, which are
occupied by vehicle paint spraying and bodyworks repairs businesses. There
are 3 tenants (no vacancies), which yield an annual income of £53,744.
The combined annual income is £106,744. The interest expense is £83,927,
giving an interest cover of 1.27x.
Borrower & Properties
2

LOAN
The Loan of £978,000 represents 75% LTV for a period of 2 years commencing
May 2015. The Borrower still intends to apply for planning permission on both
Properties to develop residential units. He will then seek development
finance or sell either of the Properties with the benefit of the planning
permission.
The Loan covered all three tranches as follows:
Tranche C: 11.00% pa*
Tranche B: 9.75% pa*
Tranche A: 7.75% pa*
*Beforefees, bad debt and taxes
SECURITY
ü The Loan is supported by a first legal charge over the properties.
ü Six months of interest (£41,963) was retained at drawdown from the
gross loan amount.
3
Loan & Security

Proplend aims to align itself with its Lenders by only charging a fee when
interest is collected and paid into their Lender Account. The net annual rates
(after fees) are as follows:
Tranche C: 9.90% pa*
Tranche B: 8.77% pa*
Tranche A: 6.97% pa*
*After fees but beforebad debts and taxes
If you had invested £25,001 in this Loan at the In Funding stage, your NET
return to date would be:
Please note that investments made through Peer-to-Peer Lending platforms are not
covered by the Financial Services Compensation Scheme (FSCS) and so your capital
and interest are not guaranteed. Savings rate used is 2.0% (AER)** and is for comparison
purposes only. Tranche returns are shown net of fees but before tax. Capital is returned
as a bullet payment at the endof the tem.
**State Bank of India 2% (AER) source: www.moneysavingexpert.com
Investor Returns
4

Although the Loan is monitored monthly, Proplend conducts an Annual
Review of all loans listed on the platform. The Annual Review for Essex,
Bexleyheath & Erith Mixed Use was conducted and published in May 2016,
approximately 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 Essex, Bexleyheath &
Erith Mixed Use Loan Investment.
Annual Review
5

6
Contact
Contact Details:
Brian Bartaby – Founder & CEO
bb@proplend.com
Benjamin Butterworth – Head of Lender Relations
bbutterworth@proplend.com
Office
+44 (0) 203 397 8290
DISCLAIMER
Proplend operates a peer to peer lendingplatform specialisingin commercial propertyloans
supportedby first charge mortgages. Whilst loaninvestments are securedagainst property,
capital is still at risk and therefore Proplendlenders face the possibility oflosingmoney.
Investments in commercial loans are longterm in nature and maynot readily be realisable.
Proplend Ltd is incorporatedin EnglandandWales registerednumber 08315922, registered
address 145-157 St John Street, London EC1V4PW. ProplendLtdis authorisedandregulatedby
the Financial ConductAuthority (firm registration no. 662661). Lenders on Proplendand other P2P
platforms are not covered by the Financial Service CompensationScheme.
If you are in any doubtas to whether lendingon Proplendis suitable for you, we recommend that
you seek independent financial advice.

Case Study: Essex Mixed Use May 2016

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Case Study: Essex Mixed Use May 2016