Post by scooter on Feb 13, 2024 19:49:27 GMT
I have queried this loan with Kuflink today. I am increasingly "surprised" by the way Kuflink have "edited" the information thay have given to investors. This is a good example of how badly they have mislead investors in the past. Whilst they seem to have stopped doing Tranche based loans, that only means that they are providing less information than ever to investors and there will be no varified reports to keep make sure they are on top of things.
I purchased Tranche 13 of this loan on 21/07/22. Original end date 24/09/23.
Except this was not the original end date.
With an 18 month term and starting on the 25/06/21 the end date would have been approximately 24/12/22.
"Approximately" because Kuflink have retrospectively changed all the dates on all the Tranches.
I note that the Valuation reports on Tranche1 for all Tiers are "Access denied". Why?
PMS INTERIM REPORT 1 18/08/21 (Attached to Tranche 2)
3.1 Programme Dates
The customer has indicated a construction period of 18 months according to their programme of works previously. Work commenced on site on the June 2021, therefore the planned completion date is August 2022.
We have not received a detailed programme from the customer of the scheme which would provide details on particular stages of the construction phase, therefore we would suggest some allowance for completion.
The borrower gives a practical completion date of Mar 23?
How did Kuflink ever think this loan was going to be paid back in Dec 22 when from the start the Borrower thought practical completion was going to be March 23 and the exit route was "sale".
The full amount of the borrowing noted on Tranche 13 was £4.8m
Except the borrowing was actually £3.8m and Kuflink had slipped another £1m onto the amount for T13.
Kuflink also retrospectively amended all the previous tranches to show the new amount for the loan.
Attached to Tranche 13
PMS INTERIM REPORT 12 (15/07/22)
Development Costs
2.1 Cost summary
The agreed loan is for a total of £3,495,000.00. We understand that the developer has put in an additional claim for more funds. However, we have not received confirmation from yourselves if this has been approved and what the additional fund amount is. If you could please clarify before the next drawdown.
2.2 Drawdown
The facility is £3,495,000.00 and therefore the remaining loan facility of £1,503,324.70 appears sufficient to complete the development at this stage. We understand that the additional funds that have been claimed from the developer are due to increased material costs. We are not at this stage aware of what these additional costs are.
Kuflink never made Investors aware of the increase in the loan amount.
The valuer didn't ever recommend the need for an increase the loan.
PMS INTERIM REPORT 13 (19/08/22)
Development Costs
2.1 Cost summary
The original facility was for £3,495,000.00. We understand that an additional £1,000,000.00 has been agreed and the new facility is now £4,495,000.00.
2.2 Drawdown
The facility is £4,495,000.00 and therefore the remaining loan facility of £2,036,080.10 appears sufficient to complete the development at this stage.
Investors received no explanation of the need for extra funds. 13% inflation does not amount to £1m increase in materials.
No explanation was given of the increased risk we faced.
Because investors are blocked from viewing the original valuation report on Tranche 1, I cannot tell if the GDV was also increased retrospectively.
Loan Updates Jul 21, 2022 09:29:42 (Same day as my Tranche 13 Investment)
We have now finalised a 9 month loan extension for this deal and can confirm that the loan end date will be 24/09/2023.
The T13 Loan case still refers to an 18 month loan term, not 27 months.
There is no mention in the Loan Case of a 9 month Extension to the the loan term.
As already mentioned, there was no mention of the extra £1m funding.
PMS INTERIM REPORT 17 (13/12/22 Tranche 18)
2.2 Drawdown
The facility is £4,495,000.00 and therefore the remaining loan facility of £812,190.20 appears sufficient to complete the development at this stage
3. Programme
3.1 Programme Dates
The customer had indicated a construction period of 18 months according to their programme of works previously. Work commenced on site on the June 2021, due to material shortages during Covid it is not expected that the works will be complete until May 2023.
Delays have been experienced and we have not received a detailed programme from the customer of the scheme which would provide details on particular stages of the construction phase, therefore we would suggest some allowance for completion.
8 Sales Information
Plot 1,3 and 4 reserved. No other plots yet reserved.
Very strong interest with new agents.
The Valuer never had site of a detailed programme from the customer - the customer is Kuflink.
And that is it - no more Tranches have been issued that I have sight of. No more Valuations are available for investors to view.
Why are there no further updates about the state of completion of this project?
How many properties have actually been sold given that we are a year on from the last update about this?
Who is paying the £800k balance of funds to the borrower? Do they have priority when it comes to capital return?
Loan Update Jul 21, 2023 13:18:29
....we have held further discussions with our client who made us aware they will be unable to redeem this facility by the expiry date of 24/09/2023. Financial difficulties and mismanagement of the project has led to the site being closed for a period of time. The site is now operational, with a new professional team overseeing the part completed development through to completion to achieve full repayment of this loan. As a result of this, we have agreed in principle a 13-month extension which is currently being progressed by our legal representatives. We will provide a further update no later than 18/08/2023 when we expect this re - term to be fully completed. We anticipate the new loan end date to be 16/10/2024.
Investors were never made aware of the site closure or mismanagement.
Investors received no uplift in interest for the 9 month re-term.
Investors received no uplift in interest for the 13 month re-term.
Loan Upates
Aug 18, 2023 14:34:18
....we have now agreed a 16 month extension with the client to allow them to exit their loan. The new loan end date will be 18/10/2024 with the re- term being back dated to 19/06/2023.
The only point in backdating the re-term can be that Kuflink get more default interest.
Aug 22, 2023 16:14:38
....In this case, the developer encountered some challenges and had to stop work. We monitor projects closely through PMS reports and by having our asset manager visit developments that we are funding, we are always ensuring that developments run smoothly, as we want to protect the money invested by our lenders. After meeting with the developer, we were faced with two options. We could place the loan into receivership, or we could work more closely with the developer to help them complete the project. We chose the latter option as it gives the best chance of our investors receiving the return of their funds.
I had a small amount of Capital returned on the 8th & 16th of Nov 23. I queried with Kuflink why no uplift in interest was and was given the following response.
Email 30/01/24 the rate does remain the same as the borrower was not charged more interest due to already making a partial loan repayment which was repaid to all investors.
Both of the re-terms happened before investors received any capital back. Please explain why you said this?
What is the real reason that investors were not given uplifts in interest?
I purchased Tranche 13 of this loan on 21/07/22. Original end date 24/09/23.
Except this was not the original end date.
With an 18 month term and starting on the 25/06/21 the end date would have been approximately 24/12/22.
"Approximately" because Kuflink have retrospectively changed all the dates on all the Tranches.
I note that the Valuation reports on Tranche1 for all Tiers are "Access denied". Why?
PMS INTERIM REPORT 1 18/08/21 (Attached to Tranche 2)
3.1 Programme Dates
The customer has indicated a construction period of 18 months according to their programme of works previously. Work commenced on site on the June 2021, therefore the planned completion date is August 2022.
We have not received a detailed programme from the customer of the scheme which would provide details on particular stages of the construction phase, therefore we would suggest some allowance for completion.
The borrower gives a practical completion date of Mar 23?
How did Kuflink ever think this loan was going to be paid back in Dec 22 when from the start the Borrower thought practical completion was going to be March 23 and the exit route was "sale".
The full amount of the borrowing noted on Tranche 13 was £4.8m
Except the borrowing was actually £3.8m and Kuflink had slipped another £1m onto the amount for T13.
Kuflink also retrospectively amended all the previous tranches to show the new amount for the loan.
Attached to Tranche 13
PMS INTERIM REPORT 12 (15/07/22)
Development Costs
2.1 Cost summary
The agreed loan is for a total of £3,495,000.00. We understand that the developer has put in an additional claim for more funds. However, we have not received confirmation from yourselves if this has been approved and what the additional fund amount is. If you could please clarify before the next drawdown.
2.2 Drawdown
The facility is £3,495,000.00 and therefore the remaining loan facility of £1,503,324.70 appears sufficient to complete the development at this stage. We understand that the additional funds that have been claimed from the developer are due to increased material costs. We are not at this stage aware of what these additional costs are.
Kuflink never made Investors aware of the increase in the loan amount.
The valuer didn't ever recommend the need for an increase the loan.
PMS INTERIM REPORT 13 (19/08/22)
Development Costs
2.1 Cost summary
The original facility was for £3,495,000.00. We understand that an additional £1,000,000.00 has been agreed and the new facility is now £4,495,000.00.
2.2 Drawdown
The facility is £4,495,000.00 and therefore the remaining loan facility of £2,036,080.10 appears sufficient to complete the development at this stage.
Investors received no explanation of the need for extra funds. 13% inflation does not amount to £1m increase in materials.
No explanation was given of the increased risk we faced.
Because investors are blocked from viewing the original valuation report on Tranche 1, I cannot tell if the GDV was also increased retrospectively.
Loan Updates Jul 21, 2022 09:29:42 (Same day as my Tranche 13 Investment)
We have now finalised a 9 month loan extension for this deal and can confirm that the loan end date will be 24/09/2023.
The T13 Loan case still refers to an 18 month loan term, not 27 months.
There is no mention in the Loan Case of a 9 month Extension to the the loan term.
As already mentioned, there was no mention of the extra £1m funding.
PMS INTERIM REPORT 17 (13/12/22 Tranche 18)
2.2 Drawdown
The facility is £4,495,000.00 and therefore the remaining loan facility of £812,190.20 appears sufficient to complete the development at this stage
3. Programme
3.1 Programme Dates
The customer had indicated a construction period of 18 months according to their programme of works previously. Work commenced on site on the June 2021, due to material shortages during Covid it is not expected that the works will be complete until May 2023.
Delays have been experienced and we have not received a detailed programme from the customer of the scheme which would provide details on particular stages of the construction phase, therefore we would suggest some allowance for completion.
8 Sales Information
Plot 1,3 and 4 reserved. No other plots yet reserved.
Very strong interest with new agents.
The Valuer never had site of a detailed programme from the customer - the customer is Kuflink.
And that is it - no more Tranches have been issued that I have sight of. No more Valuations are available for investors to view.
Why are there no further updates about the state of completion of this project?
How many properties have actually been sold given that we are a year on from the last update about this?
Who is paying the £800k balance of funds to the borrower? Do they have priority when it comes to capital return?
Loan Update Jul 21, 2023 13:18:29
....we have held further discussions with our client who made us aware they will be unable to redeem this facility by the expiry date of 24/09/2023. Financial difficulties and mismanagement of the project has led to the site being closed for a period of time. The site is now operational, with a new professional team overseeing the part completed development through to completion to achieve full repayment of this loan. As a result of this, we have agreed in principle a 13-month extension which is currently being progressed by our legal representatives. We will provide a further update no later than 18/08/2023 when we expect this re - term to be fully completed. We anticipate the new loan end date to be 16/10/2024.
Investors were never made aware of the site closure or mismanagement.
Investors received no uplift in interest for the 9 month re-term.
Investors received no uplift in interest for the 13 month re-term.
Loan Upates
Aug 18, 2023 14:34:18
....we have now agreed a 16 month extension with the client to allow them to exit their loan. The new loan end date will be 18/10/2024 with the re- term being back dated to 19/06/2023.
The only point in backdating the re-term can be that Kuflink get more default interest.
Aug 22, 2023 16:14:38
....In this case, the developer encountered some challenges and had to stop work. We monitor projects closely through PMS reports and by having our asset manager visit developments that we are funding, we are always ensuring that developments run smoothly, as we want to protect the money invested by our lenders. After meeting with the developer, we were faced with two options. We could place the loan into receivership, or we could work more closely with the developer to help them complete the project. We chose the latter option as it gives the best chance of our investors receiving the return of their funds.
I had a small amount of Capital returned on the 8th & 16th of Nov 23. I queried with Kuflink why no uplift in interest was and was given the following response.
Email 30/01/24 the rate does remain the same as the borrower was not charged more interest due to already making a partial loan repayment which was repaid to all investors.
Both of the re-terms happened before investors received any capital back. Please explain why you said this?
What is the real reason that investors were not given uplifts in interest?