Sítio das Amoreiras, Arco da Calheta, Madeira
6 Individual Houses Real Estate Project in Portugal
- Start of investment period01.09.2022
- Start time25.07.2022 15:00
- Asset classResidential
- Investment typeDevelopment
- Investment end date01.09.2023
- Remaining term8 months
- Expected rate of return12% p.a.
- Expected cash yield%
- No of investors634
- Goal€350 000
The goal of this opportunity is to finance the acquisition of a project approved to develop 6 individual luxury houses on land with 3 879m2, situated at Sítio das Amoreiras, Arco da Calheta, Madeira Island, Portugal.
Crowdestate investors will have the opportunity to invest in a mortgaged secured loan in a total amount of 350 000 Euros, arranged in a single tranche.
The source of reimbursement will be the sale of the plots with a turn-key construction contract or the sale of the built houses. Another possible source of reimbursement can be refinancing from one of the commercial banks in Portugal. The houses are expected to be delivered until December 2023.
The investment tenor for this tranche is up to 12 months.
The interest rate is 12% p.a., which will be paid monthly.
The Sponsor has an option to extend the loan period by 3 months with the obligation to increase the interest rate by 2% for the extended period.
The interest amounts to be paid monthly will be deducted from the raised value and held in an escrow account during the 12 months.
The principal payment will be made at the end of the loan period.
The loan will be secured with a 1st rank mortgage on the land and future buildings. The land has been evaluated for 636 000 Euros, as per the attached appraisal.
The LTV for this opportunity is 55%.