Published
  • Deadline
    07.02.2023
  • Start of investment period
    01.01.1970
  • Start time
    18.01.2023 15:30
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    08.12.2023
  • Remaining term
    10 months
  • Expected rate of return
    15% p.a.
  • Expected cash yield
    %
  • No of investors
    116
  • Goal
    €185 200

Executive summary

With this project, the Sponsor aims to raise a total of 500 000 Euros by providing a second-rank mortgage on a property in Caminho da Torre Velha, Sesmarias, Albufeira, a well-known holiday location in the Algarve, Portugal. 

The collateral includes a 5 070m2 plot of land with 10 townhouses units, two groups of 5 units each in a gated condominium with a shared garden and two swimming pools. This project was concluded in the past, but due to the subprime crisis's events with the original project Sponsor, it never got the final usage license and couldn't complete the commercialization.

As per the attached appraisal, the estimated market value of the collateral is 4 200 000 Euros.

After successfully raising 135,100 Euros with the first tranche, 110,200 Euros with the second tranche, 49,300 Euros with the third tranche, and 20,200 Euros with the fourth tranche, we are now campaigning for the fourth round of funding. The Project Owner wants to raise additional 185,200 Euros, to complete the total 500,000 Euros loan amount.

The Sponsor got a bank loan worth 2 000 000 Euros to purchase the property, and now he is looking to raise this additional amount to proceed with renovation work on the property, get the usage license from the City Hall, and then sell the units.

A commercial bank has the first-rank mortgage registered under its name. Crowdestate investors will have the second rank mortgage.

According to the attached appraisal, considering this tranche's value, the ratio of the project's short-term liabilities to the value of the collateral (LTV) is 60%. 

The interest rate of the loan is 15% per annum.

The loan period is 10 months, with a Sponsor's option to extend it by 6 months with the obligation to increase the interest rate by 2% for the extended period.

The principal and interest payment will be made as a bullet payment or earlier following the sales of the townhouses.

The source of loan repayment will happen with the sale of real estate townhouse units.

The withholding tax rate for all projects based in Portugal is 10% for all investors.

Crowdestate

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