1 rank Mortgage-backed loan with Low LTV
- Start of investment period01.12.2020
- Start time01.09.2020 10:50
- Asset classLeisure
- Investment typeRental
- Investment end date14.06.2021
- Remaining termOverdue 1-90 days
- Expected rate of return11.7% p.a.
- Expected cash yield%
- No of investors807
- Goal€330 000
Our newest investment opportunity from Latvia is 330 000 EUR 1st rank mortgage-secured loan with 11,7% interest rate (p.a.) with a goal to refinance SIA Hotel Kolumbs liabilities against the bank. Hotel Kolumbs is working hotel established in 2007, located in Latvian NBA star Kristaps Porzingis hometown Liepaja, which is an economically dynamic Baltic Sea region port city with good infrastructural connections – train, ferry, airport etc. Liepaja is the largest city in the Kurzeme region and the third largest in Latvia. Liepaja airport is the home base for the Air Baltic pilot academy and well connected with the busy Riga airport with 60 possible connected flights to various destinations around Europe.
The total investment amount of this campaign is 330 000 EUR with the annual interest rate of 11,7% over a 24-month period and increased 12,5-13,5% annual interest rate if loan period will be extended (max to 36 months). Interest payments are made at the end of each 12 month period and principal payments are made at the end of the loan period.
The Project Sponsor has been successfully operating a centrally-located hotel in Liepaja city for several years. The Sponsor has to refinance its currently ending bank loan, but due to the uncertainty about potential further COVID impact on the hotel industry, the bank is looking to minimize its exposure in the hotel industry and therefore, the Sponsor is unable to prolong the loan.
According to valuation from Newsec, the market value of the business is 816 000 EUR and the real estate value of the hotel building is 730 000 EUR. This means that Crowdestate investors should have a safe position with a 45% LTV ratio calculated from real estate value and an even better LTV ratio of 40% if calculated using business market price evaluation. According to conclusions from Newsec, the revenue analysis of previous years and current financial results of 2020 show that Sponsor should be capable of servicing interest payments of 330 000 EUR loan.