Paevälja tee 6, 8, 10, Lubja küla, Viimsi vald (V)
Mortgage secured row house development project
- Start of investment period18.05.2020
- Start time11.05.2020 12:00
- Asset classResidential
- Investment typeDevelopment
- Investment end date31.12.2020
- Remaining term6 months
- Expected rate of return13% p.a.
- Expected cash yield%
- No of investors340
- Goal€150 000
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 990,000.
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, according to the Sponsor, is 75% 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 13% p.a. and the loan term is scheduled up to 7 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. Accordingly, the ratio of total amount of liabilities and collateral value (LTV) is 67%.