Pending settlement
  • Deadline
    25.09.2020
  • Start of investment period
    01.01.1970
  • Start time
    15.09.2020 06:55
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    15.09.2021
  • Remaining term
    11 months
  • Expected rate of return
    10% p.a.
  • Expected cash yield
    %
  • No of investors
    473
  • Goal
    €100 000

Executive summary

Our new project offers investors an opportunity to finance the construction of three dwelling houses in the Veskimöldre 2 residential area close to Tallinn city border. The Sponsor has acquired three plots at Kesalille St. 7, 9 and 11 from its own resources and plans to build and sell single-family houses each with an effective living area of approx. 140 m2.

Total construction cost to be financed by Crowdestate investors' would be EUR 300 000, which is VAT excluded construction cost of the three houses (i.e. EUR 700 per mof living area). An application for a building permit has been submitted, but it has not yet been issued. With the current campaign, the Sponsor plans to raise EUR 100,000 against first mortgage of three properties in order to place an order for house materials and details. After the first funding round, the loan-to-value (LTV) of land plots is 36%. The precondition for the following funding campaigns is the existence of a building permit.

Investors' loans are secured by a first-rank mortgage on three properties. Interest rate of a loan with monthly payments is 9.5% (IRR 10%) and investment period is up to 12 months. During construction, estimated loan-to-value (LTV) ratio is up to 57% and LTV will be 34% when house completed.

The loan will be repaid from the sale of Kesalille St. 7, 9 and 11 houses. The construction is planned to be completed by December 1, 2020. The sales price of one house is EUR 300,000.

Crowdestate's investors have financed several Sponsor's developments (Veskioja St. 1 and Metsapargi St. 4 terraced-houses and Viirpuu St. semi-detached house), which have been successful and the loans have been repaid earlier than expected. Sponsor has outstanding loan (EUR 150,000) to fund private house construction in Laagri small town at Tervise St. 11 and loan (EUR 230,000) secured by Metsapargi St. 4 terraced-house apartments for the release of equity for the sales period of aforementioned apartments.

Crowdestate

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