Funded
  • Deadline
    30.03.2020
  • Start of investment period
    31.03.2020
  • Start time
    13.03.2020 08:10
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    28.05.2022
  • Remaining term
    25 months
  • Expected rate of return
    15.9% p.a.
  • Expected cash yield
    %
  • No of investors
    334
  • Goal
    €300 000

Executive summary

Crowdestate investors have funded the Sponsor's investment obligation in construction of a new Koru primary school in Veskimöldre-2 residential area. A total of EUR 1,160,000 was raised under four Crowdestate campaigns. To date, the Sponsor has sold 23 plots and fully repaid the first round investors' loans of EUR 500,000 plus interest and EUR 100,000 principal of the second round loan. The final return (IRR) for the first round was 16.3%. 

Due to the successful sale of the Veskimöldre-2 plots at higher than initially expected prices and the need to release equity (in particular to finance the construction of shopping center at Instituudi tee 132 property), the Sponsor has decided to offer an additional investment opportunity in amount of EUR 700,000. Amount raised within the current sixth round is EUR 300,000.

New loan will be secured by a 4th rank joint mortgage on 93 residential plots (total 151,276 m2) market value at EUR 7.88 million (excluding VAT). The outstanding senior loan amounts to EUR 3.0 million (secured by 1st and 2nd mortgage) and Crowdestate investors' loans secured by 3rd mortgage is EUR 560,000. Thus, a total of EUR 3.56 million is debt before new EUR 700,000 loan. With an additional EUR 700,000 loan, the project's LTV is 54% (the ratio of loan principal amount to the market value of 93 plots). The market value estimate is from October 2017. Price list and real transaction prices are about 15% higher than the appraised market value. In addition to the mortgage, parent company Brave Capital OÜ has issued a guarantee of EUR 200,000. The value of guarantee is not included in the collateral value.

Crowdestate investors' loan bears an interest rate of 15% per annum. Interest will be paid quarterly and loan principal returned from the sales revenue of residential plots - 30% from the sales value (excluding VAT) of each plot will be transferred as repayment of Crowdestate investors' loan.

The investment period is up to 26 months. The expected return (IRR) on a loan with quarterly interest payments is 15.9%.

The development of Veskimöldre-2 residential area includes 170 plots for single-family houses, 121 row house apartments (semi-detached house), a supermarket, dining places, health trails, schoolhouse. Residential plots are priced between EUR 90,000 and EUR 160,000 (average EUR 120,000) and average size of plot  is 1623 m2.

Crowdestate

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