Published
  • Deadline
    06.07.2022
  • Start of investment period
    01.01.1970
  • Start time
    16.06.2022 06:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    07.07.2023
  • Remaining term
    12 months
  • Expected rate of return
    12% p.a.
  • Expected cash yield
    %
  • No of investors
    75
  • Goal
    €55 000

Executive summary

With this investment opportunity, the Sponsor aims to raise 164 000 Euros. On the previous tranches, 109 000 Euros were raised, and we are now campaigning for the remaining 55 000 Euros. This amount will fund the start of all the infrastructure construction works. The Sponsor's idea is to sell the plots tied with a turn-key construction contract per plot, lowering the need for construction financing.

This project is developed in a contracted partnership between the Landowner and the Sponsor. In this case, the Landowner is offering the security of a 1st rank mortgage on the property, a plot of Real Estate urban land with construction capacity, in Rua do Bolhão, Oliveira do Douro, Vila Nova de Gaia, Portugal, to Crowdestate investors. 

The property has an approved PIP - Pedido de Informação Prévia (Previous Information Request), confirming the construction capacity. This approval issued by the Vila Nova de Gaia's City Hall gives the Sponsor additional security regarding the zoning in place for the property. Therefore, engineering and specialties projects were developed with the first tranche, and the allotment request was submitted to the City Hall.

In the meantime, the Sponsor decided to change the number of houses from 7 to 8, now having smaller homes and higher sellable square meter prices. He was also able to request the approval of a lower VAT rate (from 23% to 6%), nondeductible in Portugal, because the project stands in an ARU zone (urban rehabilitation area).

After the allotment approval, the Sponsor will start the infrastructure network construction with this second tranche.

As per the attached appraisal, this collateral property has a market value of 413 958 Euros. Therefore, the maximum LTV for this opportunity is 64%.

The maximum goal of this opportunity is 55 000 Euros.

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

The loan period is 12 months, with a Sponsor's option to extend the loan period by 6 months with the obligation to increase the interest rate by 2% for the extended period.

The loan will be repaid from the sale of the divided plots, or the Sponsor's operating revenues.

Crowdestate

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