Pending settlement
  • Deadline
    25.11.2021
  • Start of investment period
    01.01.1970
  • Start time
    15.11.2021 09:25
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    22.11.2022
  • Remaining term
    11 months
  • Expected rate of return
    10.5% p.a.
  • Expected cash yield
    %
  • No of investors
    203
  • Goal
    €283 000

Executive summary

This investment opportunity is a land development project of 20 residential housing development land plots in Juglasciems. Sponsor has acquired 30 707 m2 land plot and intends to split it into 20 residential housing land plots. The plan includes the addition of all required utilities (city water network, electricity grid, gas) to the land plots and construction of access roads - streets with street lights. Land plots will be sold ready for the construction of individual and twin houses.
The goal of this tranche is 283 000 Euros. The loan will be secured by a 1st rank mortgage on the land plot with a current market value of 809 000 EUR, which means that even made investments into infrastructure the LTV ratio will be a healthy 35%. The collateral value will increase after making investments into infrastructure. The initial business plans show that the Sponsor will be able to achieve approximately 1,2 million EUR gross revenues from the sale of 20 land plots. Crowdestate investors will have the possibility to fund further stages of the development project, which will be proposed after the first infrastructure works are completed.
The loan will bear a 10,5% per annum interest rate and principal plus interest payment will be done as a bullet payment at the end of the 12-month loan.

Crowdestate

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