Funded
  • Deadline
    27.04.2020
  • Start of investment period
    15.05.2020
  • Start time
    06.04.2020 11:45
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    31.05.2021
  • Remaining term
    7 months
  • Expected rate of return
    13% p.a.
  • Expected cash yield
    %
  • No of investors
    253
  • Goal
    €180 000

Executive summary

After a while, we are happy to offer our investors a project from Latvia - a waterfront (own private boat dock) two-section twin house development project in the nice Adazi village just 20 km from Riga city center. 

The Project Sponsor has gathered an experienced team of professionals who work on different real estate projects in Adazi which means this is their area of expertise. The Sponsor offers investors the opportunity to finance the construction of Vēja street 4, a waterfront twin house with a loan secured by a 1st . rank mortgage. 

The cost of construction is 240,000 EUR (VAT included) and construction work has already begun - Sponsor has purchased the land plot and financed the construction of the foundations of the building, purchased aerated concrete blocks and construction company has started to build up the walls. The construction deadline is the beginning of December 2020. However, taking into account that the construction of the walls is already begun it expected that construction could be finished faster and sales should start earlier. 

In the first funding round, the Sponsor plans to raise EUR 180,000. 

Loan interest rate is 13% on annual basis.

Loan period is up to for the first 12 months. The Sponsor has unilateral right to extend the loan agreement in one occasion for period of 6 months. Interest rate for extended loan period is 13% per annum. 

All interest and principal repayment will be done from the sales proceeds which are expected in the spring of 2021.

The value of the property before the start of construction activities was EUR 79,000. Despite the fact that the goal of the first round of financing is EUR 180,000, we will release 60% of the appraisal value of the property to the Sponsor after the mortgage has been established. The remaining amount will remain in Crowdestate's custody, bearing interest to investors. Further payments will be released in accordance with construction reports by independent construction supervisor.

Crowdestate

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