Pending settlement
  • Deadline
    20.02.2020
  • Start of investment period
    01.01.1970
  • Start time
    03.02.2020 13:50
  • Asset class
    Retail
  • Investment type
    Development
  • Investment end date
    20.02.2021
  • Remaining term
    11 months
  • Expected rate of return
    13.5% p.a.
  • Expected cash yield
    %
  • No of investors
    1237
  • Goal
    €700 000

Executive summary

Our new campaign offers an opportunity to invest in loans secured by 2nd rank mortgage on Raekoja Square 13 (Town Hall Square 13) property in Tallinn Old Town. In the first funding round, the Sponsor intends to raise EUR 700,000 to refinance existing liabilities and finance its business outside of Estonia. The loan has a maturity of up to 12 months and a fixed interest rate of 13.5% p.a. The Sponsor has an option for up to 6 month extension. Interest rate after the extension will be 14.5% p.a.

According to real estate evaluation made by Uusmaa the value of the property is EUR 3.63 million. First mortgage is held by bank and the debt balance is EUR 1.2 million. The loan-to-value ratio (LTV) is 53% (the ratio of 1st and 2nd rank mortgage loan principals to the property value). 

Total area of Raekoja Sq 13 building is 904.1 m2 and it is fully rented out (there are 4 tenants renting premises). The sponsor also intends to finance the building's refurbishment work in subsequent rounds.

The Sponsor will refinance Crowdestate investors' loan with a long-term bank loan in 18 months latest.

Crowdestate

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