Published
  • Deadline
    09.12.2021
  • Start of investment period
    01.01.1970
  • Start time
    05.11.2021 08:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    31.03.2023
  • Remaining term
    16 months
  • Expected rate of return
    14% p.a.
  • Expected cash yield
    %
  • No of investors
    603
  • Goal
    €650 000

Executive summary

The goal for this opportunity is to finance the construction of an apartment building, with 116 apartments, situated at 18-24, Matasari street, Bucharest, district 2, Romania.

Crowdestate investors will have the opportunity to invest in a mortgaged secured senior construction loan in a total amount of up to EUR 2,500,000, arranged in 4 tranches, based on the progression of works and the presales.

This is the 2nd tranche and will be used to complete the acquisition of land and to start off construction works. The land is evaluated for EUR 3 million by SVN Research & Evaluation Advisors. The 1st tranche of EUR 617,800 was also utilized for financing partially the purchase of the three land lots on which the project will be built. 

The three land lots have been merged, documents for the construction permitting were filed and the authorization should be issued at the beginning of November 2021. When authorization is obtained, the remaining difference for the land purchase must be paid, EUR 1.034 million. The difference of EUR 384,000 will be covered by the Sponsor’s equity. 

The investment tenor for this tranche is up to 16 months. The interest rate is 14% p.a. and it will be paid in quarterly installments. 

The loan will be secured first with a 2nd rank mortgage on the land (the 1st rank mortgage is in favor of tranche 1 investors). LTV after this 2nd tranche will be 42%.

Crowdestate

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