Kreutzwaldi 59c, 65610 Võru (IX)
Mortgage-backed residential construction loan
- Start of investment period10.04.2019
- Start time09.04.2019 13:00
- Asset classResidential
- Investment typeDevelopment
- Investment end date07.08.2020
- Remaining termOverdue 90+ days
- Expected rate of return15.58% p.a.
- Expected cash yield%
- No of investors961
- Goal€300 000
Hereby we present 9th. funding round for apartment building development at Kreutzwaldi 59c, in Võru, Estonia.
In previous funding rounds, Crowdestate investors have invested EUR 1,767,000 in this project. In this current tranche the Sponsor, Tamula Kodu OÜ targets funding of EUR 300,000.
The Sponsor is developing an apartment building with 68 apartments in Võru (capital of regional district at Southern Estonia, about 260 km south of Tallinn), next to idyllic Lake Tamula. The nature of the project is the reconstruction of a former industrial building and its conversion into a modern residential building.
The objective of this investment opportunity is to fund further construction and completion of the development.
As we are publishing this project, there are 22 apartments sold based on legal debt agreements, 2 loan applications for apartments are being processed and 10 apartments are booked based on booking agreements. Total number of apartments currently in sales pipeline is therefore 33.
To return total senior loan amount in this project, including funds raised by this funding round, Sponsor has to sell 32 apartments.
According to building reports, the project is 85% completed. The sponsor is optimistic that it is possible to receive use permit and sell sufficient number of apartments for returning all outstanding loans by the end of August 2019.
This tranche will earn a 15% fixed annual interest, loan period is set up to 8 months. Calculated rate of return (IRR) for this tranche is 15,58%.
All loans in all tranches have a 1st. lien cross-collateral mortgage in the total amount of EUR 3,000,000. The mortgage will be held in favour of investors by Crowdestate Collateral Agent.