Rua dos Amieiros, Pedroso, VNG, Portugal (III)
Construction Loan for a pre-sold Luxury House, LTV 25%
- Start of investment period09.01.2023
- Start time27.12.2022 14:15
- Asset classResidential
- Investment typeDevelopment
- Investment end date09.07.2023
- Remaining term3 months
- Expected rate of return12% p.a.
- Expected cash yield%
- No of investors88
- Goal€35 000
With this project, the Project Owner aims to raise 150,000 Euros in tranches. 75,000 Euros were raised with the first tranche, 40,000 Euros were raised with the second tranche, and we are now campaigning for the third tranche of 35,000 Euros. The first-rank mortgage on a real estate property in Rua dos Amieiros, Pedroso, Vila Nova de Gaia, Portugal, is established and 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.
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 80% built and needs some finishing touches to get to the stage where it can apply for a housing permit at the City Hall.
The pre-sale contract agreement is signed, and there is an expectation of finishing the construction by the end of March 2023.
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 25%.
The interest rate of the loan is 12% per annum.
The loan period is 6 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.
The withholding tax rate for all projects based in Portugal is 10% for all investors.