Klaose tn. 12, 14, Tartu 51013 (V)
Mortgage secured row house development project
- Start of investment period31.08.2020
- Start time19.08.2020 13:35
- Asset classResidential
- Investment typeDevelopment
- Investment end date31.08.2021
- Remaining term7 months
- Expected rate of return11% p.a.
- Expected cash yield%
- No of investors856
- Goal€420 000
Our next project presents an opportunity to invest in mortgage secured loan in amount of EUR 420,000.
Security includes 7 new completed terraced house apartments in exclusive Kvissental district, at Klaose St. 12 and Klaose St. 14, Tartu, Estonia.
Recently completed and partly commissioned row house development at Klaose St. 12 and 14 includes 12 apartments in total. 3 apartments are already sold and ownership has been transferred to new owners. 2 apartments have been sold by notarized presales agreement.
The Sponsor of the project is established construction entrepreneur who is also the developer of Klaose St. 12 and 14 row houses. The Sponsor intends to use collected funds to refinance current liabilities. The sponsor has previously raised capital from Crowdestate investors for development of Aeru St. 9, 11 and Klaose St. 12, 14 properties.
7 unsold apartments function as underlying asset for this loan.The loan is secured by a 1st. rank mortgage on unsold apartments. The market value of these apartments is EUR 850,000 excluding VAT.
The loan term is 12 months and interest rate is fixed on 11% per annum.
Sponsor has agreed to quarterly interest payments.
According to that, the internal rate of return (IRR) for this project is 11,46%.
The loan will be returned and outstanding interest will be paid out according to sales as 100% of sales revenues will be transferred to payouts to investors, but not later than the expiry date.
Loan-to-value-ratio (LTV) for this loan is 55%.