Published
  • Deadline
    10.04.2020
  • Start of investment period
    01.01.1970
  • Start time
    17.03.2020 11:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    30.09.2021
  • Remaining term
    18 months
  • Expected rate of return
    10.1% p.a.
  • Expected cash yield
    %
  • No of investors
    219
  • Goal
    €200 000

Executive summary

Our new investment opportunity is Jõeküla tee 18 apartment development in Tallinn. It consists of four unique apartment buildings and it is built in the heart of highly valued Kakumäe peninsula. There are total of 48 apartments. The Project Sponsor is experienced developer Brodal Holding, which has built and sold more than 550 apartments. The Sponsor offers investors the opportunity to finance the construction of Jõeküla tee 18 apartment buildings with a loan secured by a 1st mortgage

Crowdestate investors have previously funded the development of Sponsor Metsapargi 6 and Taevasilma 5 row-house (semi-detached house) projects. The first has been successfully exited. The construction of Taevasilma 5 has been completed and real estate contracts are being concluded. 

The cost of Jõeküla 18 construction is 3.9 million + VAT and construction work has already begun. Four houses will be built at the same time and the construction deadline is May 2021. 

In the first funding round, the Sponsor plans to raise EUR 200,000. Loan interest rate is 10% on an annual basis and the first interest payment will be made in 12 months from the first funding round. Investment period is up to 18 months

The loan will be repaid from apartment sales revenue. However, the Sponsor plans to refinance Crowdestate investors' loan with a bank loan once the required pre-sales level (14 apartments) has been achieved. As of today, 7 apartments have been booked. The Sponsor has a binding funding offer from a bank. 

There will be a total of 3,290 m2 of sellable apartment area, storage rooms in the basement or next to the apartment. Most apartments have balconies and first floor apartments have private terraces. The development includes 74 parking spaces. 

Sales prices range from EUR 125,000 to 250,000 and the average apartment sales price is EUR 2,396 m2.

Crowdestate

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