Exited
  • Deadline
    31.03.2021
  • Start of investment period
    30.03.2021
  • Start time
    22.03.2021 13:15
  • Asset class
    Healthcare
  • Investment type
    Development
  • Investment end date
    07.06.2022
  • Remaining term
    Overdue 1-90 days
  • Expected rate of return
    11.4% p.a.
  • Expected cash yield
    %
  • No of investors
    242
  • Goal
    €100 000

Executive summary

In previous rounds Crowdestate investors financed the construction of a new Helme retirement home in amount of EUR 700,000. Current and fifth round offers EUR 100,000 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.

The first stage of the construction works will be completed on 15.04.21 and 60 beds can be filled immediately after receiving the permit of use. 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 roads and parking areas around the house are covered with gravel and await asfalt paving in the spring. The attached photos are as of March 20, 2021. The total construction cost of the project is EUR 1.16 million, of which EUR 150,000 will be covered by the PRIA fund (non-refundable grant from Agricultural Registers and Information Board), EUR 210,000 is the Sponsor's own equity and EUR 800,000 will be Crowdestate investors' loan. 

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 6 months. The investment period is 8 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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