Pending settlement
  • Deadline
    02.02.2023
  • Start of investment period
    01.01.1970
  • Start time
    29.12.2022 14:30
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    02.02.2024
  • Remaining term
    12 months
  • Expected rate of return
    13% p.a.
  • Expected cash yield
    %
  • No of investors
    49
  • Goal
    €20 200

Executive summary

With this investment opportunity, the Sponsor aims to raise 20 200 Euros. On the previous tranches, 319 800 Euros were raised. This amount will fund the continuation 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 specialities projects were developed with the first tranche, and the allotment request was approved by 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 obtain 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).

As per the attached appraisal, this collateral property has a market value of 413 958 Euros. Considering the 319 800 Euros of licensing, architecture and engineering projects, infrastructure works invested into the property, the maximum LTV for this opportunity is 51%.

The maximum goal of this opportunity is 20 200 Euros.

The interest rate of the loan is 13% 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, the sale of the townhouses or the Sponsor's operating revenues.

At the moment one of the eight townhouses has a pre-sale agreement signed.

The interests and principal payment will be made at the end of the loan period.

The withholding tax rate for all projects based in Portugal is 10% for all investors.

Crowdestate

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