Published
  • Deadline
    29.01.2022
  • Start of investment period
    01.01.1970
  • Start time
    29.12.2021 10:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    28.01.2023
  • Remaining term
    12 months
  • Expected rate of return
    10% p.a.
  • Expected cash yield
    %
  • No of investors
    327
  • Goal
    €240 000

Executive summary

With this investment opportunity, the Crowdestate investors have the opportunity to invest in a secured mortgage loan in the amount of 240 000 Euros.

The Sponsor aims to raise a total of 400 000 Euros. The purpose of the loan is to provide capital to purchase a property in Travessa de Romões, Ronfe, Guimarães, Portugal.

This property is divided into 12 plots; 11 have old townhouses built that need renovation and expansion works, as they will be converted into apartments (1st stage), and the 12th plot will target a new apartments project (2nd stage). The idea is to start renovating the existing buildings while a license is obtained for the 2nd stage. After selling the renovated properties, the result will pay for the entire land, and the Sponsor's profit will arrive on developing the 2nd stage.

With this first tranche of 240 000 Euros, the Sponsor is offering the first-rank mortgage in a property located in Bouça, Batancas e Barra, Lousada, in Portugal. According to the attached appraisal, the estimated market value of this collateral is 432 000 Euros. Therefore, considering the 1st rank mortgage of 240 000 Euros, if Crowdestate investors fund the total amount, we reach an LTV of 56%.

The interest rate of the loan is 10% per annum.

The loan period is 12 months, with a Sponsor's option to extend the loan period by 6 months with the obligation to increase the interest rate by 2% for the extended period. 

The principal and interest payments will be made at the end of the loan period. If the loan term is extended for an additional 6 months, the interest for the 18 months will be paid at the end of the first 12 months.

The loan will be repaid from the sale of the property, refinancing, or the Sponsor's operating revenues.

The second tranche of 160 000 Euros will be launched, and the estate offered as collateral are the plots located in Travessa de Romões, Ronfe, Guimarães. 

Only after both tranches are successfully funded will the purchase and the first rank mortgage be registered.

Crowdestate

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