Paevälja 16, Lubja küla, Viimsi (I)
Mortgage secured residential development project
- Start of investment period24.01.2022
- Start time17.01.2022 12:00
- Asset classResidential
- Investment typeDevelopment
- Investment end date29.06.2022
- Remaining termOverdue 1-90 days
- Expected rate of return10% p.a.
- Expected cash yield%
- No of investors309
- Goal€120 500
The purpose of this current investment opportunity is to finance construction of one-family house project at Paevälja str. 16, Lubja municipality, Viimsi parish, Harju country, Estonia. The project is located 20 min away by car from the Tallinn city centre and close to highly valued district Pirita (Tallinn) and Viimsi centre with developed infrastructure. This is the Sponsor's first project, which is plan to finance through Crowdestate platform.
Investors will be offered an opportunity to finance the construction of one-family house in total amount of EUR 350,000 with several investment rounds. The construction costs in amount of EUR 250,000 will be financed according construction supervision acts and the last EUR 100,000 will be financed after signing the notarised pre-sale agreement with the buyer. The amount of the first round is EUR 120,500. Construction is in progress - the foundation of one house is ready and construction of walls has begun. The construction deadline is Summer 2022.
The fixed interest rate is 10% p.a. There are no periodical interest payments. The investment period is up to 12 months. The Sponsor has the right to extend the loan period for 4 month with the interest rate of 12% per annum for the extension period.
House residential area is 171,8 m2 . The house price is EUR 650,000 with tax. The final price will be adjusted according the demand and after the sales offer has been published to the real estate portal.
The loan is secured by a first-rank mortgage on residential land plot at Paevälja str. 16, Lubja municipality, Viimsi parish, Harju county.
According to the evaluation report, the current value of the land plot with incomplete building is EUR 284,000 w/o tax. For the project risks mitigation we use cost based LTV. Accordung to the land purchase value and completed construction costs price, the the cost based ratio of the current liabilities and collateral value (LTV) is 62%. Max. cost based LTV during the project will be 80%.