Published
  • Deadline
    03.10.2022
  • Start of investment period
    01.01.1970
  • Start time
    15.09.2022 13:30
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    03.07.2023
  • Remaining term
    9 months
  • Expected rate of return
    12% p.a.
  • Expected cash yield
    %
  • No of investors
    78
  • Goal
    €75 000

Executive summary

With this project, the Project Owner aims to raise 150,000 Euros in two tranches, 75,000 Euros each. The first-rank mortgage on a real estate property in Rua dos Amieiros, Pedroso, Vila Nova de Gaia, Portugal, secures the loan.

The collateral includes a 3 000 m2 plot of land with an individual house, a garden and a swimming pool. This project is expected to be concluded by the beginning of 2023 with the final usage license.

As per the attached appraisal, the estimated market value of the collateral is 393,500 Euros.

Through this, the first round of funding, the Project Owner wants to raise 75,000 Euros out of 150,000 Euros. The remaining loan amount will be mobilized through the next funding round.

The collateral belongs to one of the Project Owner’s shareholders, the architect Claudia Brandão. She bought the land and licensed the construction of the individual house. When the construction process started, the Project Owner’s company, Mansarda & Mansão Lda, was incorporated, the shareholders being Claudia’s father and mother. They started to invest their equity in the construction of the house. Now the house is 60% built and needs some finishing touches to get to the stage where it can apply for a housing permit at the City Hall.

According to the attached appraisal, considering this tranche’s value, the ratio of the project's short-term liabilities to the value of the collateral (LTV) is 19%. Therefore, after the next tranche, the maximum LTV for this project is 32%.

The interest rate of the loan is 12% per annum.

The loan period is 9 months, with a Project Owner's option to extend it by 3 months with the obligation to increase the interest rate by 2% for the extended period.

The principal and interest payments will be made as a bullet payment at the end of the loan period. Or if the house gets sold, then earlier.

The source of loan repayment will happen with the sale of real estate.

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