Published
  • Deadline
    30.11.2021
  • Start of investment period
    01.01.1970
  • Start time
    18.11.2021 11:05
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    24.11.2022
  • Remaining term
    11 months
  • Expected rate of return
    11.3% p.a.
  • Expected cash yield
    %
  • No of investors
    303
  • Goal
    €248 000

Executive summary

This investment opportunity is a land development project of 18 residential housing development land plots in Juglasciems. The sponsor has acquired 27 095 m2 land plot and intends to split it into 18 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 248 000 Euros. The loan will be secured by a 1st rank mortgage on the land plot with a current market value of 708 000 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 1,1 million EUR gross revenues from the sale of 18 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 11,3% 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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