Pending settlement
  • Deadline
    31.10.2021
  • Start of investment period
    01.01.1970
  • Start time
    12.10.2021 07:00
  • 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
    638
  • Goal
    €300 000

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 5th tranche of the investment opportunity in the amount of EUR 300,000. The first tranche was EUR 262,300 (raised in November 2020), the second tranche was EUR 220,000 (raised in December 2020), the 3rd tranche was EUR 290,000 (raised in July 2021), the fourth tranche was EUR 200,000 (raised in October 2021).

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

At this moment, 12 apartments of the 1st phase are reserved (13%) for a cumulated price of ~EUR 855,000 and ~EUR 28,000 were paid in advance.

The investment tenor for this tranche is up to 15 months. The interest rate is 13.5% p.a. and it will be paid in monthly installments.

The loan will be secured with a 5th rank mortgage on the land and future buildings. Higher ranks are used to secure previous Crowdestate's loans, in total amount of EUR 972,300. The land has been evaluated for EUR 980,000. If we take into account all investments made up to date (~EUR 1.9 million + EUR 980,000 land valuation), the Loan-To-Cost  is 44%.




Crowdestate

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