Funded
  • Deadline
    30.11.2020
  • Start of investment period
    12.11.2020
  • Start time
    09.11.2020 12:05
  • Asset class
    Healthcare
  • Investment type
    Development
  • Investment end date
    10.12.2021
  • Remaining term
    9 months
  • Expected rate of return
    11.2% p.a.
  • Expected cash yield
    %
  • No of investors
    340
  • Goal
    €150 000

Executive summary

In the first funding round Crowdestate investors financed the construction of a new Helme retirement home in amount of EUR 250,000. Current and second round offers EUR 150,000 investment opportunity. The Sponsor has been providing care for the elderly in the current 75-bed Helme Retirement Home since 2014. To meet the growing demand, the Sponsor has acquired the adjacent building, which can be converted into a 160-bed retirement home. 

Helme retirement home is located in Helme borough, Valga County, approx. 2 km from city of Tõrva. It is a beautiful place next to Helme primeval valley and manor park.

Construction work is underway and has proceeded as planned. Internal demolition work has been completed, sewerage work has been completed, an underfloor heating system has been installed and floor concrete casting has been completed, ventilation and electrical works are under way, and interior finishing has begun. The total construction cost of the project is EUR 1.16 million, of which EUR 150,000 will be covered by the PRIA fund, EUR 210,000 is the Sponsor's own equity and EUR 800,000 will be Crowdestate investors' loan. 

The construction will be financed in stages. Together with the non-refundable grant from PRIA fund (Agricultural Registers and Information Board) and the loan from Crowdestate investors, the Sponsor plans to build 60-bed retirement home in the first phase and open it in 1st quarter of 2021. In the second phase, another 40 beds will be added. Another 60 beds will initially stay in reserve and will be built as additional demand arises. 

The Sponsor will conclude a contract with Tõrva municipality for 35 beds and there are 25 more people in queue for care services. Thus, when a new retirement home is opened, 60 places would be filled immediately. 

Loan interest is 11% on an annual basis and the first interest payment is due in 8 months. The investment period is 13 months, plus a double 6-month extension option (interest 12% after the first extension and 14% after the second extension). Investors' loans are secured by a 1st mortgage on a property under renovation, a guarantee from AS Helme Pansionaat (the operator of 75-bed retirement home) and a personal surety of the Sponsor's key person Sven Allas. 

Crowdestate investors' loan will be repaid by refinancing with a long-term bank loan. The Sponsor's current 75-bed retirement home has been financed by Swedbank, which has also expressed its willingness to refinance the construction loan after obtaining of the permit of use and when retirement home is operational.

Crowdestate

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