Every figure links to the page it came from.
When your committee asks where a figure comes from, the answer is already on the deal: the model cell, the source page and who added it.
Annual net operating income revised to GBP 840,000.
- Model cell
- Credit model, C1
- Added by
- Alex Morgan Wed 17:31
Annual net operating income revised to GBP 840,000.
- Model cell
- Credit model, C1
- Added by
- Alex Morgan Wed 17:31
Operion traces 2.00x back to its source.
Nobody rebuilds the trail before committee.
- 1Credit paper, section 4The paper puts cover at 2.00x on the revised income. Beside it are the figure's two sources: the credit model and the borrower's statement.
- 2Credit model, cell C32.00x is GBP 840,000 of income over GBP 420,000 of interest. The loan is GBP 6,000,000 at 7%, interest-only.
- 3Revised statement, page 3Operion reads the GBP 840,000 of income from the borrower's revised statement, and keeps the first statement's GBP 900,000 for comparison.
- 4Who added itAlex Morgan added the revised statement from the borrower's email. Operion read it, reran the model and redrafted the credit paper, and each step is on the deal's history.
North Quay Works · Credit paper · Draft for committee
3. The loan
A loan of GBP 6,000,000 to North Quay Holdings towards the GBP 10,000,000 cost of North Quay Works, a canal-side warehouse in Leeds, at 60% loan-to-cost.
The loan is interest-only at 7%, or GBP 420,000 a year. The principal is repaid from the sale in year 5.
4. Income and cover
On net operating income of GBP 900,000, interest cover is 2.14x. The loan is supportable, subject to the current rent roll. On the revised income of GBP 840,000, interest cover falls to 2.00x. The loan remains supportable, subject to the current rent roll and the borrower's explanation of the GBP 60,000 fall.
Redrafted by Operion on the revised income
5. Conditions
Before drawdown: the current rent roll, requested from North Quay Holdings on 29 September 2026 and still outstanding, and the borrower's explanation of the GBP 60,000 fall in income.
Open questions: whether the borrower or any of its directors has been in administration and whether the change of use has been granted.
Revised operating statement, page 3
Page 2 of 6
- Calculated
- Net operating income over interest
- Period
- Year ended 30 June 2026
Sources
Credit model, cell C3=C1/C2
Operating statement v2.pdf, page 3
- 1Credit paper, section 4The paper puts cover at 2.00x on the revised income. Beside it are the figure's two sources: the credit model and the borrower's statement.
North Quay Works · Credit paper · Draft for committee
3. The loan
A loan of GBP 6,000,000 to North Quay Holdings towards the GBP 10,000,000 cost of North Quay Works, a canal-side warehouse in Leeds, at 60% loan-to-cost.
The loan is interest-only at 7%, or GBP 420,000 a year. The principal is repaid from the sale in year 5.
4. Income and cover
On net operating income of GBP 900,000, interest cover is 2.14x. The loan is supportable, subject to the current rent roll.On the revised income of GBP 840,000, interest cover falls to 2.00x. The loan remains supportable, subject to the current rent roll and the borrower's explanation of the GBP 60,000 fall.Redrafted by Operion on the revised income
5. Conditions
Before drawdown: the current rent roll, requested from North Quay Holdings on 29 September 2026 and still outstanding, and the borrower's explanation of the GBP 60,000 fall in income.
Open questions: whether the borrower or any of its directors has been in administration and whether the change of use has been granted.
Revised operating statement, page 3
Page 2 of 6
Interest coverCredit paper, section 42.14x→2.00x- Calculated
- Net operating income over interest
- Period
- Year ended 30 June 2026
Sources
Credit model, cell C3=C1/C2
Operating statement v2.pdf, page 3
Needs reviewWaiting for Alex Morgan - 2Credit model, cell C32.00x is GBP 840,000 of income over GBP 420,000 of interest. The loan is GBP 6,000,000 at 7%, interest-only.Net operating income900,000840,000Interest, GBP 6,000,000 at 7%420,000420,000Interest cover2.14x2.00xEquity cash flow, years 1 to 4480,000420,000Year 5, with the sale6,480,0006,420,000Sponsor IRR18.87%17.55%
- 3Revised statement, page 3Operion reads the GBP 840,000 of income from the borrower's revised statement, and keeps the first statement's GBP 900,000 for comparison.North Quay HoldingsNorth Quay Works, Leeds
Revised operating statement
For the year ended 30 June 2026
2026GBP2025GBPIncomeGross rental income1,164,6001,131,300Service charge recoveries96,25091,640Other income18,38517,220Vacancy and credit loss(139,345)(76,410)Effective gross income1,139,8901,163,750Operating expensesService charge costs(148,120)(141,280)Repairs and maintenance(61,870)(54,690)Insurance(41,300)(38,150)Management fees(48,600)(46,200)Total operating expenses(299,890)(280,320)Net operating income840,000883,430Notes
Gross rental income is rent due under leases in force.
Vacancy and credit loss is empty units and unpaid rent.
Replaces the statement issued earlier. Unaudited.
Page 3 of 7
Read from page 3Net operating income (GBP)900,000→840,000- Period
- Year ended 30 June 2026
- Replaces
- Operating statement v1.pdf, page 3
- Used in
- Interest cover, 2.00x
- 4Who added itAlex Morgan added the revised statement from the borrower's email. Operion read it, reran the model and redrafted the credit paper, and each step is on the deal's history.Operating statement v2.pdf arrived from North Quay HoldingsWed 17:31History10All activity
Wednesday
Operion drafted a note to Clare Hollis“Could you tell us which units the GBP 60,000 fall relates to, and send the supporting detail?”Not sent17:34Operion redrafted section 4 of the credit paperOn the revised incomeNeeds review17:34Operion reran the credit modelInterest cover2.14x→2.00x17:34Operion read Operating statement v2.pdfNet operating income, page 3840,00017:31AMAlex Morgan added Operating statement v2.pdfFrom the borrower's email17:31Tuesday
Operion ran the credit modelInterest cover2.14x16:40AMAlex Morgan added NQW model v7.xlsxCredit model16:40Monday
Operion read Operating statement v1.pdfNet operating income, page 3900,00015:40AMAlex Morgan added Operating statement v1.pdfFrom North Quay Holdings15:40SPSam Patel added North Quay Works valuation report.docxFrom the appraiser15:40
Your team decides whether the borrower's figure is right.
A link shows where a figure came from. It does not prove the source is true.
For your team
For North Quay Holdings
Research
Waiting for review
Dear Clare,
The revised operating statement puts net operating income at GBP 840,000, against GBP 900,000 in the first statement, with the whole difference in vacancy and credit loss. Could you tell us which units the GBP 60,000 fall relates to, and send the supporting detail? We need it before the credit paper goes to committee.
Thank you,
Alex Morgan
