Published
  • Deadline
    07.10.2022
  • Start of investment period
    01.01.1970
  • Start time
    15.09.2022 12:35
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    30.09.2023
  • Remaining term
    12 months
  • Expected rate of return
    13% p.a.
  • Expected cash yield
    %
  • No of investors
    92
  • Goal
    €160 000

Executive summary

With this investment opportunity, the Crowdestate investors will have the opportunity of investing in a real estate secured mortgage bridge loan in the amount of EUR 160,000. 

The purpose of the loan is to provide the additional capital for ongoing construction works in the real estate property located in 12 Tractorului Street, Sibiu City, Sibiu County, Romania. 

To secure this loan of EUR 160,000, the Sponsor is offering the 1st rank mortgage over one land plot that will be used for the development of a future residential project with a total area of 4,500 sqm located near Strand neighbourhood in Sibiu City, Romania. According to the attached appraisal,  the minimum market value of the land plot is EUR 297,000 (evaluated by Neoconsult Valuation Romania). Therefore, considering the 1st rank mortgage of EUR 160,000, if Crowdestate investors will fund the total amount, we reach an LTV of 53%.

The interest rate of the loan is 13% per annum.

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

The principal payment will be made at the end of the loan period. The interest will be paid quarterly. 

The loan will be repaid from the sale of the units when finalised, sale of the mortgaged collateral, sale of other land plots owned by the Sponsor,  refinancing or from  the Sponsor's operating revenues.


Crowdestate

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