Exited
  • Deadline
    09.12.2020
  • Start of investment period
    01.12.2020
  • Start time
    25.11.2020 09:20
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    24.05.2021
  • Remaining term
    Overdue 1-90 days
  • Expected rate of return
    11% p.a.
  • Expected cash yield
    %
  • No of investors
    207
  • Goal
    €69 000

Executive summary

Our next investment opportunity includes financing of construction costs of a 5-apartment terraced house project. The property is located at Oja tee 4, in Loo borough, Jõelähtme municipality, Harju country, Estonia; 3 km outside of Tallinn (capital) city limits and 15 km from Tallinn city center.

Project Sponsor, Manopla OÜ seeks to raise EUR 462,000 in total to finance construction activities of Oja tee 4 development project. Funding is organized through up to 6 funding rounds.

Objective of current, the first funding round is to raise EUR 69,000, which will be used for financing the construction costs at Oja tee 4. The source of loan repayment is sale of completed apartments or refinancing through bank loan. 

The construction of the Oja tee 4 terraced house project has already started in October 2020. Sponsor intends to commission the project in Spring 2021.

The investment earns a fixed interest rate at 11% p.a. There is no periodic interest payments.

Loan term is scheduled up to 11 months with a possibility to extend the loan term up to 6 months with higher interest rate of 13% p.a. 

The loan is secured by first rank mortgage on residential land plot of Oja tee 4, loo alevik, Jõelähtme municipality with valid construction permit. 

According to the valuation document, the current value of the collateral is EUR 145,000. In our project analysis and in our financing decisions we assess the current property value somewhat lower, EUR 115,000. In our opinion this valuation would correspond better with economics of a development project with given parameters in that general location and we have capped the financing accordingly.  The ratio of loan amount and collateral value for this funding round (LTV) is 60%.

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