Funded
  • Deadline
    12.08.2019
  • Start of investment period
    13.08.2019
  • Start time
    09.08.2019 08:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    08.08.2020
  • Remaining term
    7 months
  • Expected rate of return
    11.4% p.a.
  • Expected cash yield
    %
  • No of investors
    627
  • Goal
    €100 000

Executive summary

Within this financing project, we offer the opportunity to invest in a secured loan used to complete the development project at Pargi Street 10, Tartu, Estonia.

The sponsor, EEA Majad OÜ seeks to raise EUR 100,000 for a period of up to 12 months. The funds will be used to finance the construction of Pargi 10 development project. Crowdestate investors have previously funded the project in total amount of EUR 460,000.

Pargi Street 10 development includes two buildings with a total of 50 residential and office spaces and divided into two development phases. In the first stage, the historic building was reconstructed with 42 apartments and offices, a total of 1,670 m2 of net area. This phase is complete, the use permits for these apartments are issued and more than 70% of the units are sold.

The second stage of development consists of building a new residential building with 786 m2 net area (8 apartments). This stage is 90% complete, 1 apartment is booked.

The loan is secured by a 1st. rank mortgage on 6 apartments (NLA 515 m2 in total).In addition to the mortgage, there is a personal guarantee of EUR 230,000 from the Sponsor. The value of 6 apartments (taking into account the cost of the land and construction works actually performed) is EUR 736,000 and loan-to-value (LTV) ratio is 76%This ratio does not take into account the amount of the personal guarantee. The ratio of Crowdestate's loans to the estimated sale price of collateral excluding VAT is 51.5%.

Interest rate for the loan is 11% per annum. The loan will be returned at the end of the loan period or from sales of collateral units. The Sponsor has committed to quarterly interest payments. Calculated internal rate of return (IRR) would be 11.4%.

Crowdestate

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