Oksa 6a (II), 11316 Tallinn
Secured development loan
- Start of investment period29.11.2019
- Start time27.11.2019 11:00
- Asset classResidential
- Investment typeDevelopment
- Investment end date30.11.2020
- Remaining termOverdue 90+ days
- Expected rate of return11% p.a.
- Expected cash yield%
- No of investors790
- Goal€101 000
Crowdestate investors financed the acquisition of Oksa St. 6a property 18 months ago. The Sponsor is currently applying for a new 12-month loan to refinance the earlier loan.
Requested loan amount is EUR 101,000 and it is secured by an existing first-rank mortgage. Fixed interest rate is 10.5% p.a. and interest payments are on a monthly basis (expected internal rate (IRR) is 11%). According to the evaluation report, the market value of the collateral is EUR 196,000 and loan-to-value ratio (LTV) is 52%.
The project sponsor (Oksa Arendus OÜ) is planning to build a 3-storey small apartment building on Oksa St. 6a property in Kristiine district, Tallinn. There will be 5 apartments and 2 commercial premises. The intended function of commercial premises is rental (or guest) apartments, but they can also be used as small offices.
The money raised in the previous round was used to partially finance the purchase of the property. Due to the delay in the process of applying for the building permit, the Sponsor wishes to refinance the earlier loan. Estimated time for issuing the building permit is February or March 2020. After the building permit is issued, investors will have the opportunity to finance construction as well.