Funded
  • Deadline
    27.09.2021
  • Start of investment period
    28.09.2021
  • Start time
    15.09.2021 07:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    31.07.2022
  • Remaining term
    9 months
  • Expected rate of return
    14.5% p.a.
  • Expected cash yield
    %
  • No of investors
    197
  • Goal
    €100 000

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. The 1st tranche of EUR 180,000 was raised in June 2021 and this is the 2nd tranche of the investment opportunity for EUR 100,000. 

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 10 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 2nd rank mortgage on the land and existing construction (1st rank mortgage is also signed in favor of Crowdestate’s investors).  Current investment value of the project including land & existing construction is EUR 555,000, therefore the LTV for the first 2 tranches is ~50%.

Crowdestate

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