Exited
  • Deadline
    14.01.2021
  • Start of investment period
    04.01.2021
  • Start time
    31.12.2020 10:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    24.05.2021
  • Remaining term
    Overdue 90+ days
  • Expected rate of return
    11% p.a.
  • Expected cash yield
    %
  • No of investors
    188
  • Goal
    €56 700

Executive summary

The purpose of current investment opportunity is to continue financing 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 second funding round is to raise EUR 56,700, 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 10 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 value of the collateral at the beginning of the project was 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. To date, foundation works have been completed in the amount of EUR 56,700. Done works are confirmed by construction supervision act. The ratio of loan amount of two funding rounds according to land plot reduced value and done construction works (LTV) is 73%.

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