Published
  • Deadline
    27.04.2020
  • Start of investment period
    01.01.1970
  • Start time
    26.03.2020 08:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    31.12.2020
  • Remaining term
    9 months
  • Expected rate of return
    11% p.a.
  • Expected cash yield
    %
  • No of investors
    189
  • Goal
    €150 000

Executive summary

The purpose of current investment opportunity is to finance construction of terraced house project with 12 apartments in 3 separate buildings at Paevälja Road 6, Paevälja Road 8 and Paevälja Road 10, Viimsi, Estonia. 

The amount of this funding round is EUR 150,000. Crowdestate’ investors have previously invested in this project in the amount of EUR 800,000. 

The source of loan repayment is sales of completed apartments. Sponsor plans to complete the construction by the end of Summer 2020.

As we publish this project, the construction is 65% completed and 7 apartments are sold. As apartments will be completed, this current sales rate is sufficient to return the loan principal and pay out interest.

By an independent real estate professional who consulted us, in this current situation, banks tend to regard home loans as financeable and those buyers who have obtained positive financing decision before signing legal debt agreement, will get financing to finalise the transaction.

The investment earns a fixed interest rate at 11% p.a. and the loan term is scheduled up to 9 months

The loan is secured by a 1st rank mortgage on 11 apartments of Paevälja Road 6, Paevälja Road 8 and Paevälja Road 10 properties. One of the apartments is mortgaged to local municipality to secure investments in infrastructure related to Paevälja Road development.

The value of the collateral is EUR 1,88 million. Accordinglyt, the ratio of total amount of liabilities and collateral value (LTV) is 56%.

Crowdestate

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