Funded
  • Deadline
    23.09.2019
  • Start of investment period
    23.09.2019
  • Start time
    19.09.2019 09:50
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    28.02.2021
  • Remaining term
    16 months
  • Expected rate of return
    16.1%
  • Expected cash yield
    %
  • No of investors
    1456
  • Goal
    €230 000

Executive summary

Current investment opportunity is the third funding round for Veskimöldre-2 residential area infrastructure construction (Koru basic school-kindergarten). In Veskimöldre-2 project, roads and communications have been built and sale of plots is in progress - 35% of plots is sold. The Sponsor has already invested EUR 10 million and there is yet to meet the investment commitment of EUR 1.2 million agreed with the municipality in the planning process, for which a EUR 950,000 loan is applied from Crowdestate investors. From the first round funded by Crowdestate investors in February 2019, the Sponsor has sold 11 residential plots and the principal of the first round loan has been reduced from EUR 500,000 to EUR 209,000.

Funding is provided in three parts. Current third  round funding is in amount of EUR 230,000. The investment is secured by a 3rd ranking mortgage on 106 residential plots (173,319 m2) valued at EUR 9.05 million (excluding VAT). The balance of the first and second ranking mortgage loan is EUR 2.9 million. LTV of the project is 39% (the ratio of mortgage-secured loan principals to value of 106 plots). In addition to the mortgage, parent company Brave Capital OÜ has issued a guarantee of EUR 200,000.

Crowdestate investors' loan bears an interest rate of 15% per annum. Interest payments are quarterly and the principal amount will be returned from the sales income of residential plots of Veskimöldre-2 - 20% from the sales value (excluding VAT) of each plot will be transferred as repayment of Crowdestate investors' loan.

The investment period is up to 17 months. The expected return (IRR) on a loan with quarterly interest payments is 16.1%.

The development of Veskimöldre-2 residential area includes 167 single-family house plots, 121 row house apartments, a supermarket, dining places, health trails, schoolhouse. Residential plots are priced between EUR 90,000 and EUR 160,000 (average EUR 115,000) and average plot size is 1606 m2.

Crowdestate

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