Funded
  • Deadline
    11.11.2019
  • Start of investment period
    11.11.2019
  • Start time
    08.11.2019 08:15
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    28.02.2021
  • Remaining term
    15 months
  • Expected rate of return
    15%
  • Expected cash yield
    %
  • No of investors
    1125
  • Goal
    €210 000

Executive summary

Crowdestate investors have funded the Sponsor's investment obligation in the construction of a new Koru primary school in Veskimöldre 2 residential area. The Sponsor's investment commitment is in amount of EUR 1.2 million and investors have so far financed the project in amount of EUR 950,000. Since the start of financing, the Sponsor has sold 13 plots in the Veskimöldre-2 residential area and has repaid the loan in amount of EUR 370,000 and the remaining balance of liabilities is approx. EUR 580,000.

Due to the successful sale of residential plots and at higher than initially expected prices, the Sponsor has decided to offer Crowdestate investors financing for the construction of the school with an additional fourth round in amount of EUR 210,000.

In Veskimöldre-2 project, roads and communications have been built and sale of plots is in progress - 40% of plots is sold. The Sponsor's investment amount to EUR 10 million. From the first round funded by Crowdestate investors in February 2019, the Sponsor has sold 13 residential plots and the principal of the first round loan has been reduced from EUR 500,000 to EUR 128,253.

The investment is secured by a 3rd ranking mortgage on 104 residential plots (168,213 m2) valued at EUR 8.7 million (excluding VAT). The balance of the first and second ranking mortgage loan is EUR 3.0 million. LTV of the project is 44% (the ratio of mortgage-secured loan principals to value of 104 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 - 25% from the sales value (excluding VAT) of each plot will be transferred as repayment of Crowdestate investors' fourth round loan.

The investment period is up to 16 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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