Pending settlement
  • Deadline
    14.10.2022
  • Start of investment period
    01.01.1970
  • Start time
    14.09.2022 18:20
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    30.09.2023
  • Remaining term
    12 months
  • Expected rate of return
    14% p.a.
  • Expected cash yield
    %
  • No of investors
    120
  • Goal
    €60 000

Executive summary

The goal for this opportunity is to finance the construction of 4 houses (2 duplexes) on a total land of 1212 sqm, situated at 39 Privighetorilor street, Balotesti, Ilfov county, Romania. 

Crowdestate investors will have the opportunity to invest in a mortgaged secured senior construction loan in a total amount of EUR 320,000, arranged in 7 tranches, based on the progression of works and the presales. The 1st tranche of EUR 40,000 was raised in March-April 2022, the 2nd tranche of EUR 50,000 in June 2022 and the 3rd tranche of EUR 50,000 in July 2022. This will be the 4th tranche of the investment opportunity in the amount of EUR 60,000. 

The source of reimbursement will be the pre-sales collected from their clients or the sale of the houses when finalized. At this moment, 2  houses out of the total 4 houses are pre-contracted (2nd house was sold in July 2022). The houses are expected to be delivered until March 2023. The second possible source of reimbursement can be refinancing from one of the banks operating in Romania.  

The investment tenor for this tranche is up to 12 months. The interest rate is 14% p.a. and it will be paid in quarterly instalments. The loan will be secured with a 4th rank mortgage on the land and future buildings. The land has been evaluated for EUR 79,000 by Neoval Consulting. Other investments related to project such as: authorisation & other soft costs in the amount of ~EUR 19,000, acquisition of metallic structures in the amount of ~EUR 100,000 plus other ~EUR 150,000 for construction materials & suppliers (such as: facades, fencing, carpentry, roof, electric connection, sewage, structure assembly, concrete) were made from Sponsor’s own equity. Thus,  the LTV after the 4th tranche will be ~57%.

Crowdestate

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