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From the Ablrate Blog

P2P Lending and the Jack Russell Pub Cardiff 11/02/2020

Ablrate raised £750,000 for the purchase and refurbishment of the Miss Jones pub in Cardiff. The pub was closed and work began, unfortunately, before the work could be finished the group to which the pub was to become a part of went into administration.

The refurbishment had been suspended partway through which had involved significant structural work to increase the footprint of usable space. Because of this the back of the building was not secure and remained open to the elements. This left administrators in a catch 22 situation as additional investment was needed to bring the building back to a usable state. But the property in its current state would not recoup the original investment of the lenders.

“The state of the building was poor. After the collapse of Burningnight, we had to get creative to recover our client’s money. The location is very good, the bar had previously performed well and the team looking at buying it had a good track record. It made sense for us to look beyond just selling the property and crystalizing the loss for lenders.” David Bradley-Ward

The original lenders faced a lengthy recovery of the funds which could end in a significant loss of capital due to the non-completion. It was therefore decided that undertaking the planned refurbishment to restore a successful trading business would be the best scenario for the current P2P lenders. Ablrate negotiated with the initial builders, capitalised the builder’s debts, capitalised Ablrate fees and launched a new loan to cover the £470,000 needed to finish the work and refurbish the new Jack Russell Pub.

Thankfully the Jack Russell pub opened as expected Christmas 2019! It’s now being run and loans are due to be repaid from revenue. The venue is looking fantastic and is pulling in the crowds, check out the guided tour of the Jack Russell in the video below:

This shows the benefit of having an agile organisation like Ablrate managing these loans. Many large organisations would just accept this as a loss and move on. The team here at Ablrate managed to bring different groups together to  create a workable solution and see it through to completion, helping protect the investment of their members.

The venue is now a popular Irish Bar concept which has been refurbished from recycling old Irish bars and curiosities. The wooden side panels at either side of the bar are made from wood reclaimed from Belfast’s Harland and Wolff shipyard from where RMS Titanic was launched.

There are always risks when it comes to Peer to Peer lending and this could have been a terrible outcome for everyone involved from the lenders to the builders. However, lenders’ supported the concept of a new loan and the Ablrate plan for recovery.

By having a company like Ablrate supporting the loans means there are more potential solutions when a loan goes bad. Please check out the video above and if you are ever in the Cardiff area head into the Jack Russel pub and get yourself a drink!

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