PBL155 - Westbury Castle - was sold on behalf of receivers appointed by Lendy at auction on February 15th 2018, for £1.5m, which was far short of the original independent valuation put on the property.
Before this loan was written, Lendy undertook detailed due diligence with our advisers, including valuations by RICS registered independent property agencies.
The sale of PBL155 though is just one stage in our process for recouping maximum value for lenders. Following the auction, we have acted immediately to protect the interests of our investors.
As part of our efforts to bridge the gap between the value of the property realised at auction and the loan value, we will therefore be pursing all legal and other enforcement options available to recover the outstanding balance owed (in line with the terms of the loan agreement) and we will update investors on that and other actions in due course.
Despite our strong and sustained track record of delivering above market returns to our investors, there are, sadly, occasional instances where a single property may not realise its full potential value for investors.
It is for this reason that we always recommend that investors diversify their portfolios across a wide range of loans in order to manage concentration risk effectively.
We also always recommend that investors read the full independent valuation reports on the properties they lend against and never to commit more than they are comfortable with to any one loan.
We are however very aware that investors will be disappointed at the price realised, so we would like to reassure them that the team will be putting every effort into recovering as close to the full capital value as possible, on top of the interest already earned.
Finally, the advice we have received suggests we have a good prospect of recovering the remaining capital, accrued interest and bonus accrual.
Whilst we cannot go into any further detail than what is already in our updates here at this point in time, further updates will be issued in due course.