Ozolciema 4, LV-1058, Riga, Latvia
Mortgage-backed residential development loan
- Start of investment period12.07.2019
- Start time17.06.2019 07:00
- Asset classResidential
- Investment typeDevelopment
- Investment end date23.12.2020
- Remaining termOverdue 90+ days
- Expected rate of return13.5% p.a.
- Expected cash yield%
- No of investors942
- Goal€550 000
This investment project offers an opportunity to invest in a mortgage secured loan. Raised capital will be used for refinancing existing loans. The object of this investment opportunity is a development property, located at Ozolciema iela 4, Riga, Latvia.
Ozolciema iela 4 (project name Dienvidu Pakavs 3) is a land plot with area of 14 978 m2. Development has obtained a building permit, allowing to build 19 644 m2 in two construction phases (above ground Gross Buildable Area, or the GBA), that would consist of up to 232 economy class apartments.
The Sponsor to the project is SIA Mezkalna Invest (Latvia), owner of the property located at Ozolciema iela 4, Riga. Founders of SIA Mezkalna Invest have previously funded the acquisition and further development of the same property by Crowdestate investors. 50% of this loan is prematurely returned.
With this investment round, Crowdestate investors will refinance the current Crowdestate loan, as the Sponsor predicts a faster price increase for apartments than for construction prices in Riga for the next two years, and therefore sees the opportunity to make the project more profitable by postponing construction by two years.
The sponsor is planning to raise EUR 550,000. The duration of this real estate investment opportunity is 24 months with an early partial or full redemption option after 12 months.
The Project offers Crowdestate's investors a fixed interest rate of 13,5% p.a. with annual interest payments. The first interest payment is due in 12 months.
This real estate investment opportunity is secured by 1st charge mortgage on the Ozolciema iela 4 property. Collateral value is EUR 1.1 million. Loan to value ratio (LTV) in this opportunity is therefore 50%.