Vēja Street 4, Ādaži, Ādažu county, Latvia (II)

This is second funding round for a residential development 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 works are in process. Sponsor purchased the land plot and financed the construction of the foundations of the building and walls. In week 20, Construction company started the assembly of roof constructions. The construction deadline is the beginning of December 2020. However, taking into account that the construction of the roof construction is begun it is expected that construction could be finished faster and sales should start earlier. 

In the second funding round, the Sponsor plans to raise EUR 120,000.

Loan interest rate is 13% on an annual basis.

The loan period is up to for the first 12 months. The Sponsor has unilateral right to extend the loan agreement in one occasion for a period of 6 months. The interest rate for an 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 and according to construction documentation approved by independent construction supervisor, the Construction Company has completed 45% of construction works in the amount of 103,643 EUR (construction of walls completed and roof structure assembly has started). 

According to the loan agreement, Crowdestate is releasing raised funds only after construction reports approved by the independent construction supervisor. The remaining amount remains in Crowdestate's custody, bearing interest to investors. However, the calculation of interest is started immediately after the funding round is closed and independently from dates when funds are released and transferred to Sponsor.