How much will the CREDIT CRUNCH affect Falmer?

[Brighton Breezy]

Possibly been discussed on here before but with all the RIDICULOUS threads on here this last week or so I can't be bothered to sift through them all.

Will the credit crunch affect Falmer?

I know a lot of construction companies are being hit hard by it and numerous projects have been shelved because of this.

Also, will it be harder to secure loans for the financing of the stadium?

 

[beorhthelm]

should have very little effect. theres a very visable revenue stream to pay for this development over 20-30 years, or in common terms its money for old rope. in fact if other projects are being put off and theres surplus of labour and materials it might even make it cheaper.

the problems in construction is where house builders build stock to sell and they arent selling what they've laready built.

 

[sten_super]

I'm pretty sure there was a quote from Martin Perry in the Argus article about the stadium earlier this week, in which he said that it will in some ways help them; construction projects are being cancelled, so once funding is secured (which he didn't talk about, but I would expect to be more expensive, rather than more difficult) the contracted construction firm should have plenty of capacity to get straight on with the work.

 

[Withdean Wanderer]

IF you believe Perry:

Perry also moved to allay any fears that the current credit crunch might affect the stadium project.

"We have structured the financial package to make it attractive to the banks, even in this difficult financial climate, and we have already received strong expressions of interest from tier-one banks.

"Working closely with our financial advisors PriceWaterhouseCoopers we are confident of securing the necessary funding for our new home and hope to announce a preferred funding partner before the end of this year."

 

[Lord Bracknell]

I think the banks are more worried about committing money to projects that rely on the state of the housing market or on high-risk commercial opportunities.

Fortunately the Albion have steered clear of "enabling developments" such as hotels and have teamed up with the education sector, where the financial risks are much lower.

This can only help. As will the new-found competiveness in the construction industry.

 

[Seagull73]

Possibly been discussed on here before.

Will the credit crunch affect Falmer?

Also, will it be harder to secure loans for the financing of the stadium?

1) Yes it has - NUMEROUS TIMES

2) Not at all because it's not housing related

3) No

Hopefully that answers everything for you.

 

[Tom Bombadil]

Depends how much we're borrowing. As the cost of credit has gone up any money we have to borrow will cost us more in interest than it would have done 12 months ago, therefore our breakeven income will have gone up.

 

[The Large One]

Depends how much we're borrowing. As the cost of credit has gone up any money we have to borrow will cost us more in interest than it would have done 12 months ago, therefore our breakeven income will have gone up.

Not necessarily.

You're talking about lending rates in the form of - for want of a better term - published rates. The club, on the other hand, because there is more than one company interested in funding the project, might well be in a position to negotiate far more favourable and more flexible terms.

 

[Tom Bombadil]

Not necessarily.

You're talking about lending rates in the form of - for want of a better term - published rates. The club, on the other hand, because there is more than one company interested in funding the project, might well be in a position to negotiate far more favourable and more flexible terms.

Which in the current climate will cost more than it did last year, I understand the cost of alll credit is higher at the moment.

 

[supaseagull]

It's ok, the finance package has been agreed...Northern Rock have said they'll finance it

 

[ewe2]

I am sure i speak for many fans in looking forward to the day talking and the rumours stop and the building starts........

 

[The Clown of Pevensey Bay]

It's been discussed here

Credit crunch and Falmer - North Stand Chat

here

The credit crunch and Falmer - North Stand Chat

here

DIY....Falmer....Credit crunch - North Stand Chat

here

Just a question folowed by a concern.... - North Stand Chat

here

DICK KNIGHT you are slimey for what you've done - North Stand Chat

and here

fresh delays at falmer? - North Stand Chat

Excellent SEARCH work, Morris

 

[Hiney]

Depends how much we're borrowing. As the cost of credit has gone up any money we have to borrow will cost us more in interest than it would have done 12 months ago, therefore our breakeven income will have gone up.

If the rate of interest on the Club's borrowing is linked to Bank Base Rate, then it will cost LESS that it would have done 12 months ago.

 

[desprateseagull]

what if one or more of the various fund sources pull out, because their own finances are not what they were..

 

[Tom Bombadil]

If the rate of interest on the Club's borrowing is linked to Bank Base Rate, then it will cost LESS that it would have done 12 months ago.

But the rates the banks lend at are at a higher mark up on base rate than they were 12 months ago.

 

[Lord Bracknell]

The big issue is whether the banks are competing with each other to lend the Club money, or whether the Club is competing with other developers to get its hands on money from the banks.

In the current climate, it might well turn out to be the first of these.

 

[dougdeep]

with all the RIDICULOUS threads on here this last week or so I can't be bothered to sift through them all.

Sorry Richie, I can't be bothered to reply.