Pending settlement
  • Deadline
    30.11.2022
  • Start of investment period
    01.01.1970
  • Start time
    04.11.2022 12:10
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    31.08.2023
  • Remaining term
    8 months
  • Expected rate of return
    14% p.a.
  • Expected cash yield
    %
  • No of investors
    360
  • Goal
    €160 000

Executive summary

The goal for this opportunity is to finance the completion of the construction works for 4 row houses situated at 56-58 Bucuresti street, Varteju, Magurele town, Ilfov County, Romania. 

Crowdestate investors will have the opportunity to invest in a mortgaged secured senior construction loan in a total amount of EUR 200,000, arranged in 2 tranches. This is the 1st tranche of the investment opportunity for EUR 160,000. 

The source of reimbursement will be the sale of the houses when finalized. The houses are expected to be delivered by February-March 2023 and commissioned by June-July 2023. The second possible source of reimbursement can be refinancing from one of the banks operating in Romania.  

The investment tenor for this tranche is up to 9 months, with a Project Owner’s option to extend the loan period by 6 months. The interest rate of the loan is 14% p.a.. The principal and interest payments will be made at the end of the loan period. If the Project Owner uses the right to extend the loan, the interest rate for the extension rate is 16%. 

The loan will be secured with a 1st rank mortgage on the land and existing constructions, in various stages of development. The mortgage was evaluated for a total of EUR 325,000 by Neoval Consulting in October 2022. Thus, the LTV for the 1st tranche is ~49%.

Crowdestate

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