• Deadline
  • Start of investment period
  • Start time
    22.01.2020 08:05
  • Asset class
  • Investment type
  • Investment end date
  • Remaining term
    Overdue 1-90 days
  • Expected rate of return
    11.2% p.a.
  • Expected cash yield
  • No of investors
  • Goal
    €72 000

Executive summary

With our current funding campaign we are raising the last amount for financing of construction of the shopping center at Instituudi tee 132, Laagri. Amount raised with current round is EUR 72,000. Together with the previous three rounds the total construction loan will be EUR 1.3 million. The construction of the shopping center has been completed. Construction loan is secured by a second-rank mortgage on Instituudi tee 132 property. Interest rate of the loan is 11.2% on an annual basis and it is paid in a lump sum at the end of the loan period or when the property will be sold. Loan period is up to 8 months.

IMPORTANT: The construction loan is secured by a 2nd rank mortgage and after the existing mortgage is removed, the Crowdestate investors' loan will be secured by a 1st rank mortgage on Institute tee 132 (see Project Description section). Based on Rimi’s request for preliminary legal protection the court has issued an injunction to suspend delivery of possession of leased premises at Instituudi tee 132 to Coop. Initially, the delivery of possession was planned to be completed in November 2019 and the shopping centre was planned to be opened on 15 December 2019. The Sponsor now aims to open the centre in March 2020. The Sponsor will file for the damages caused by the delay in the delivery of the premises.

Crowdestate investors contributed equity investment in the same project in October 2018.

The sponsor will build a 2,408 m2 shopping center for a leading retail chain Coop. The total space leased by the anchor tenant is 1,260 m2. The construction loan borrowed from Crowdestate investors and interest will be repaid by selling the income generating property to a financial investor. Construction loan and accrued interest will be repaid first. After that, equity investors' investment, preferred interest and profit share.

The shopping center is being built by Nordlin Ehitus and construction has been finished. The Sponsor has so far financed the construction and preparatory work of the building from the equity capital and Crowdestate investors have funded EUR  1,228,000 in the first, second and third rounds.


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