Funded
  • Deadline
    23.07.2021
  • Start of investment period
    04.08.2021
  • Start time
    06.07.2021 09:30
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    31.01.2023
  • Remaining term
    15 months
  • Expected rate of return
    13.5% p.a.
  • Expected cash yield
    %
  • No of investors
    596
  • Goal
    €290 000

Executive summary

The goal for this opportunity is to finance the construction of a 90 apartment building, situated at 199-201-203, Drumul Ciorogarla street, Bucharest, district 6, Romania. This will be Phase 1 of a larger 360 apartment development on a land of 10,000 sqm. 

Crowdestate investors will have the opportunity to invest in a mortgaged secured senior construction loan (for more information regarding senior debt, please check out this blog post - https://blog.crowdestate.eu/en/2020/secured-loan-definition/) in a total amount of EUR 2,600,000, arranged in 7-8 tranches, based on the progression of works. This is the 3rd tranche of the investment opportunity in the amount of EUR 290,000. The first tranche was EUR 262,300 (raised in November 2020) and the second tranche was EUR 220,000 (raised in December 2020). 

The source of reimbursement will be the sale of the units when finalized. 

At this moment, 17 apartments of the 1st phase are reserved (21%) for a cumulated price of ~EUR 1.16 million and ~EUR 43,000 were paid in advance.

The investment tenor for this tranche is up to 18 months. The interest rate is 13.5% p.a. and it will be paid in monthly installments.

The loan will be secured with a 3rd rank mortgage on the land and future buildings. The land has been evaluated for EUR 980,000. After this funding round, the land value-based LTV for this project is 80%. If we take into account all investments made up to date (~EUR 1 million + EUR 980,000 land valuation), the LTV is 40%.




Crowdestate

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