Funded
  • Deadline
    09.07.2021
  • Start of investment period
    08.07.2021
  • Start time
    24.06.2021 08:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    31.07.2022
  • Remaining term
    12 months
  • Expected rate of return
    14.5% p.a.
  • Expected cash yield
    %
  • No of investors
    406
  • Goal
    €180 000

Executive summary

The goal for this opportunity is to finance the consolidation and reconfiguration of an old building to finalize a residential project consisting of 6 new apartments located in Brasov, 20 Lunga street, Brasov county. This GF + 2F + Attic boutique residential project will have a total built area of 528 sqm and a usable area of 432 sqm and an inner courtyard of 84 sqm together, with the share of 145 sqm from the land afferent to the building.

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 330,000, arranged in 3 tranches, based on the progression of works and the presales. This is the 1st tranche of the investment opportunity for EUR 180,000

The source of reimbursement will be the sale of the apartments when finalized. The apartments are expected to be delivered between February 2022 - March 2022. The second possible source of reimbursement can be refinancing from one of the banks operating in Romania.  

The investment tenor for this tranche is up to 12 months. The interest rate is 14.50% p.a. and it will be paid upon the selling of the objective, partially or in whole, together with the principal, but no later than the loan’s maturity.  The loan will be secured with a 1st rank mortgage on the land and existing construction. The land & existing construction have been evaluated for EUR 375,000 by SVN Research & Valuation Advisors, therefore the LTV for the 1st tranche is 48%.

Crowdestate

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