Pascarella 26, Reggio Emilia, Italy
Loan to develop 4 apartments located at Reggio Emilia
- Start of investment period30.11.2020
- Start time19.11.2020 09:00
- Asset classResidential
- Investment typeSpeculative
- Investment end date15.09.2021
- Remaining termOverdue 1-90 days
- Expected rate of return11% p.a.
- Expected cash yield%
- No of investors214
- Goal€80 000
Pascarella 26, Reggio Emilia, Italy investment opportunity involves the recovery of a disused building through the creation of 4 exclusive apartments and parking spaces, located in a green and residential area of the city and a short walk from the center of Reggio Emilia.
The total space on which the project is developed is approximately 380 sqm.
The Sponsor of the project, Real Estate Trading srl, purchased the building in October 2020 and the renovation works have already begun.
The property is located in a residential area of Reggio Emilia, just 3 km from the historic center of the city.
To date, the sponsor has already started the renovation of the building and plans to complete the apartments by April 202 1. The sale of the properties is estimated by the end of August 2021.
The Sponsor searches through Crowdestate a part of the capital necessary to finance a part of the renovation works. The total cost of the project is approximately 500,000 Euros and the Sponsor contributes an important share of the equity of 420,000 Euros. The rest of the funds are financed by the crowdfunding loan for another 80,000 euros.
Crowdestate investors exposure is very limited. The mere sale of any of the apartments will make it possible to fully repay the Crowdfunding loan.
The expected return for investors is 11% on an annual basis and the repayment date of the loan is expected within 9 months, therefore by August 2021. The sponsor has the possibility to repay the loan early, in the event that the sales of the apartments progressed faster than planned.
The loan is secured by a personal guarantee from the owner of the company for 80,000 euros.