Exited
  • Deadline
    20.09.2018
  • Start of investment period
    19.09.2018
  • Start time
    18.09.2018 09:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    08.10.2019
  • Remaining term
    Overdue 1-90 days
  • Expected rate of return
    13%
  • Expected cash yield
    %
  • No of investors
    739
  • Goal
    €200 000

Executive summary

Hereby we present next funding round for apartment building development at Kreutzwaldi 59c, in Võru, Estonia.

In previous funding rounds, Crowdestate investors have invested EUR 900,000 in this project. In this current tranche the Sponsor, Tamula Kodu OÜ targets funding of EUR 200,000. Crowdestate investors have an opportunity to fund the construction of the residential development project at Kreutzwaldi 59c, Võru in the total amount of EUR 1,400,000.

The Sponsor is developing an apartment building with 68 apartments in Võru (capital of regional district at Southern Estonia, about 260 km south of Tallinn), next to idyllic Lake Tamula. The nature of the project is the reconstruction of a former industrial building and its conversion into a modern residential building.

The project is divided into two distinct phases. The Sponsor is looking to fund the constructions costs of the first phase of the project.

The first phase includes all necessary demolition works, construction works, building inner partition walls for all 68 apartments and finishing 28 apartments. The remaining 40 apartments will be finished and sold during the second stage of the project. 17 of 28 apartments in the first stage have already been sold.

The funding target for the fifth tranche is EUR 200,000. This 12-month tranche will earn a 13% fixed annual interest. Sponsor finds it plausible to repay the loan before the expiration date as sales activities have been quite fruitful so far.

All loans in all tranches have a 1st. lien cross-collateral mortgage in the total amount of EUR 1,927,000. The mortgage will be held in favor of investors by Crowdestate Collateral Agent. 

The total funding is arranged in up to 7 separate funding rounds, EUR 200,000 to EUR 300,000 each.

According to the financial model, the loans would be returned and interest paid out latest by September 2019. As the Sponsor is obliged to return 95% of sales revenues to Crowdestate investors, the actual loan period may turn out to be shorter. Accrued interest is paid out at the end of the investment period along with the return of the principal.

Prior to this campaign, the Sponsor has already invested EUR 900,000 equity into this project. Investments have been used for acquiring the property and financing ongoing construction works.

Crowdestate

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