Published
  • Deadline
    30.09.2021
  • Start of investment period
    01.01.1970
  • Start time
    03.09.2021 07:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    31.03.2023
  • Remaining term
    18 months
  • Expected rate of return
    14% p.a.
  • Expected cash yield
    %
  • No of investors
    395
  • Goal
    €308 100

Executive summary

The goal for this opportunity is to finance the working capital of the Sponsor for developing a real estate project on the newly acquired land plot, in a total amount of EUR 308,100. The loan will be structured as a mortgage secured loan. The land plot is located at 1A, Calea Fagarasului, Brasov, Brasov County, Romania. This land will be used for the development of a future residential project of ~380  apartments and a total of ~770 underground and aboveground parking space. 

The first tranche of EUR 691,900 was raised in July-August 2021 and fully used for land acquisition. This current investment opportunity is the 2nd tranche of the project. 

The main source of reimbursement will be the sale of other land plots situated in Brasov City and owned by the Sponsor (Tribeach group). Alternative sources of reimbursement can be:

- refinancing from one of the local banks operating in Romania;
- the sale of ongoing residential projects developed by the Sponsor (Tribeach group) in Poland (2 ongoing projects in Krakow) and the United States (1 project in New York).

The investment tenor for this tranche is up to 17 months. The interest rate is 14% p.a. and it will be paid in monthly instalments. The Sponsor undertakes to repay the principal of the loan before the end of the loan period. The loan will be secured with a 2nd rank mortgage on the land. The land has been evaluated for EUR 3,183,200 by Colliers International, therefore the LTV after this 2nd tranche is 32%.

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