Funded
  • Deadline
    12.07.2019
  • Start of investment period
    04.07.2019
  • Start time
    03.07.2019 12:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    08.08.2020
  • Remaining term
    5 months
  • Expected rate of return
    11.4% p.a.
  • Expected cash yield
    %
  • No of investors
    547
  • Goal
    €230 000

Executive summary

Within this financing project, we offer the opportunity to invest in a secured loan used to complete the development project at Pargi Street 10, Tartu, Estonia.

The sponsor, EEA Majad OÜ seeks to raise EUR 230,000 for a period of up to 13 months. The funds involved will be used to finance the construction costs of the final phase of development project. Crowdestate investors have previously funded Pargi 10 project in the amount of EUR 230,000.

Pargi Street 10 development includes two buildings with a total of 50 residential and office spaces and divided into two development phases. In the first stage, the historic building was reconstructed with 42 apartments and offices, a total of 1,670 m2 of net area. This phase is complete, the use permits for these apartments are issued and ca. 74% of the units are sold.

The second stage of development consists of building a new residential building with 786 m2 net area (8 apartments). This stage is 70% complete, 1 apartment is booked.

The value of the building under construction is EUR 916,000 e. 1166 EUR/m2. The valuation is based on  purchase agreement of the Pargi Street 10 property and construction reports. The market value of completed apartments would reach to 2400 EUR/m2  based on already concluded sales transactions with apartments from the first phase of the development project.

The loan is secured with 1st. lien mortgage on 6 apartments (NLA 515 m2 in total) in the second phase of the development project. Accordingly, current value of the collateral is EUR 600,000. In addition to mortgage, the Sponsor has agreed to expand personal assurance provided for the first funding round also to secure this current campaign. The amount of the personal assurance is EUR 230,000. 

Interest rate for the loan is 11% per annum. The loan will be returned at the end of the loan period or according to sales of collateral units. The Sponsor has committed to quarterly interest payments.

Calculated internal rate of return (IRR) would be 11,4%.

Loan-to-value (LTV) ratio for this opportunity  is 77%. This regards only mortgaged security and does not include personal assurance.

Crowdestate

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