Funded
  • Deadline
    10.09.2019
  • Start of investment period
    10.09.2019
  • Start time
    27.08.2019 06:45
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    31.08.2020
  • Remaining term
    11 months
  • Expected rate of return
    11.2%
  • Expected cash yield
    %
  • No of investors
    988
  • Goal
    €390 000

Executive summary

In our next financing project, we are offering the opportunity to invest in a secured bridge loan used to refinance current liabilities of a terraced house development company.

The Sponsor would like to raise EUR 390,000 for a period of up to 12 months. The funds will be used to return equity loan to Crowdestate KK3 OÜ, a financing body, funded by Crowdestate investors and which in 2018 provided equity loan for developing a row house at the address Käokella Road 3, Järveküla, Rae Parish, Harju County, Estonia by Energiamaja Kaks OÜ. Energiamaja Kaks OÜ and the Sponsor share overlapping ownership structures. 

The bridge loan is secured by a 1st-rank mortgage on development property in Järveküla, Rae Parish, Harju County, Estonia, as well as 1st-rank mortgage on the Käeokella Road 3-7 , the furnished apartment used as a showroom for Käokella Road 3 row house development. The Käokella Road 3 development is completed and ca. 85% of the apartments are sold. The total mortgage amount is EUR 545,000.

According to valuation documents concerning development properties and information about sales transactions values of Käokella Road 3 apartments, the total value of the collateral is EUR 600,000.

The loan period is up to 12 months

Ca. 50% of the loan, ca. EUR 200,000 will be returned and first interest payment is made in 3 months, by 30.11.2019. The rest of the loan amount will be returned and accrued interest is paid by 31.08.2020 the latest.

The loan has an annual interest rate of 11%. No periodic interest payments will be made.

The loan-to-value ratio (LTV) in this project is 65%. After the partial repayment, LTV remains 50%.

Calculated internal rate of return (IRR) for this project is 11,2% per year.

Crowdestate

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