Funded
  • Deadline
    18.09.2020
  • Start of investment period
    18.09.2020
  • Start time
    11.09.2020 11:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    30.06.2021
  • Remaining term
    9 months
  • Expected rate of return
    14.5% p.a.
  • Expected cash yield
    %
  • No of investors
    385
  • Goal
    €50 000

Executive summary

The goal for this opportunity is to finance the construction of 12 individual houses, situated at 33, Samurcasi street, Gulia village, Tartasesti, Dambovita county, Romania. This will be phase 1 of a larger 30 houses project on a land of 21,101 sqm. 

Crowdestate investors will have the opportunity to invest in a mortgaged secured senior construction loan (for more information regarding senior debt, please check out this blog post - https://blog.crowdestate.eu/en/2020/secured-loan-definition/) in a total amount of EUR 400,000, arranged in 5 tranches, based on the progression of works. The 1st tranche of the investment opportunity in the amount of EUR 50,000 was raised in June. The 2nd tranche of EUR 50,000 was raised in August. This will be the 3rd tranche for EUR 50,000. 

The source of reimbursement will be the sale of the houses when finalized. 

At this moment, all 12 houses of the 1st phase are pre-contracted and expected to be delivered between October 2020 - June 2021.

The investment tenor for this 3rd tranche is up to 9 months. The interest rate is 14.50% p.a. and it will be paid in monthly installments. The loan will be secured with 3rd rank mortgage on the land and future buildings (the 1st rank mortgage is in favor of the 1st tranche investors and the 2nd rank mortgage is in favor of the 2nd tranche investors). The land has been evaluated for EUR 966,700After this funding round, land value based LTV of this project is 16%.

The below video shows Homefield - the prior project of the Sponsor - now finalized and sold.


Crowdestate

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