Funded
  • Deadline
    28.03.2021
  • Start of investment period
    06.04.2021
  • Start time
    22.02.2021 14:30
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    31.03.2023
  • Remaining term
    18 months
  • Expected rate of return
    14% p.a.
  • Expected cash yield
    %
  • No of investors
    1127
  • Goal
    €650 000

Executive summary

The goal for this opportunity is to finance the construction of an apartment building, with 116 apartments, situated at 18-24, Matasari street, Bucharest, district 2, Romania.

Crowdestate investors will have the opportunity to invest in a mortgaged secured senior construction loan in a total amount of up to EUR 2,500,000, arranged in 5 tranches, based on the progression of works and the presales.

This is the 1st tranche of the investment opportunity for EUR 650,000 and will be utilized for financing the purchase of the three land lots on which the project will be built. The land is evaluated for EUR 3 million by SVN Research & Evaluation Advisors, therefore the LTV for the 1st tranche is 21.6%.

The three land lots will be merged and documents for the construction permitting will be filed. When authorization is obtained, the remaining difference for the land purchase will be paid, ~EUR 1.1 million, probably in May 2021.

The investment tenor for this tranche is up to 24 months. The interest rate is 14% p.a. and it will be paid in quarterly installments.

The loan will be secured first with a 1st rank mortgage on the two smaller land lots (320 sqm and 336 sqm) - which will be paid in full at the mortgage signing - and 2nd rank mortgage on the larger land lot of 2,376 sqm - which will be paid partially EUR 368,000 (the landowner will retain first rank mortgage until the remaining price of EUR 1 million is paid).

Crowdestate

Site is down for maintenance, please check back in 15 minutes