Cancelled
  • Deadline
    10.02.2020
  • Start of investment period
    01.01.1970
  • Start time
    31.01.2020 11:00
  • Asset class
    Industrial
  • Investment type
    Speculative
  • Investment end date
    31.12.2022
  • Remaining term
    34 months
  • Expected rate of return
    18.5% p.a.
  • Expected cash yield
    %
  • No of investors
    0
  • Goal
    €350 000

Executive summary

Our new project offers investors the opportunity to acquire Koru 12 ha property in Saue municipality, Koidu village (~2.5 kms from border of Tallinn). The purpose of the investment is to change intended purpose of the property through a detailed plan and thereby increase the value of the registered immovable. 

The size of Koru property is 12.27 ha, its present intended purpose is profit yielding land and the prospective purpose is commercial land. Current market value is EUR 294,000 (EUR 2.40 per m2).

The SPV (name) to be created by Crowdestate will accumulate investors' capital and purchase Koru property from BC Arenduse OÜ at a price of EUR 300,000. In addition, the SPV (name) will raise an additional EUR 50,000 to finance cost of detailed planning and operating costs (land tax, transaction and funding costs). The total amount to be raised is EUR 350,000

The purchase price of the property applies to the mortgage free property, ie. the mortgages will be paid off in the course of the acquisition  and the SPV will be the owner of the property free of liabilities. 

BC Arendus OÜ concludes a sales contract with a repurchase right, ie. has the right to repurchase the property for a fixed term. The repurchase price depends on the time of repurchase. The repurchase right is valid until December 31, 2022, and depending on the time of repurchase the internal rate of return IRR is between 18.5% and 19.5%.

Crowdestate

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