Pending settlement
  • Deadline
    25.08.2022
  • Start of investment period
    01.01.1970
  • Start time
    04.08.2022 07:30
  • Asset class
    Office
  • Investment type
    Development
  • Investment end date
    31.05.2023
  • Remaining term
    9 months
  • Expected rate of return
    13.5% p.a.
  • Expected cash yield
    %
  • No of investors
    412
  • Goal
    €175 000

Executive summary

With this project, the Crowdestate investors will have the opportunity to invest in a mortgage-secured senior loan for a maximum of EUR 175,000 arranged in 1 tranche. The funds will be used partially to refinance current obligations and partially to finance the refurbishment of the property.

To secure the loan, the Project Owner offers the first-rank mortgage over two office spaces already completed within the residential project named “21 Popa Nan”, located in a very good area of Bucharest. The offices are developed on the ground floor with a total usable area of 224,39 sqm. According to the attached appraisal, the market value of this collateral is EUR 385,000 (evaluated by Neoval Consulting Romania). Therefore, the LTV for this loan is ~45%.

The loan period for this opportunity is 10 months, with a Project Owner’s option to extend the loan period by 6 months. The interest rate of the loan is 13,5% per annum. If the Project Owner uses the right to extend the loan, the interest rate for the extension rate is 15,5%. The principal and interest payments will be made at the end of the loan period.

The loan will be repaid by selling the 2 office spaces, selling other assets owned by the Project Owner or refinancing from a local bank. 

Crowdestate

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