Via De Coubertin, Potenza, Italia (IV)
Secured loan to finance apartment building construction phase
- Start of investment period30.07.2020
- Start time27.07.2020 08:30
- Asset classResidential
- Investment typeDevelopment
- Investment end date01.07.2021
- Remaining termOverdue 90+ days
- Expected rate of return12.5% p.a.
- Expected cash yield%
- No of investors554
- Goal€250 000
This fourth fundraising tranche aims at raising up to 250 000 Eur to finance the completion of the construction works.
The 2-month-construction stop due to the lockdown, together with, the new policies for accessing the construction site and the slowdown in the procurement of materials had a negative impact on the completion date. For this reason, the Sponsor company requires a new loan tranche.
In the meantime, the first two loan tranches were repaid to investors for a total of 750 000 Eur, in addition to interests. Current investors' exposure reduced significantly from 1,100,000 Eur to 600,000 Eur (including the current fourth tranche).
In recent months, construction work has progressed to:
- Completion of internal plasters.
- Completion of external intonations and internal hydraulic systems.
- Electrical system completion phase.
- Thermal plants completion phase.
- Fixtures in delivery and screeds under construction.
Via De Coubertin, Potenza, Italy project aims at completing the construction of a 36 new apartment residential building, located in a valuable residential area of Potenza, Italy. The project is already fully started. The building, consisting of two main bodies, is currently under construction and is already built for over 80%.
The total sum of the senior loan and Crowdestate loan is 3,1 million EUR and 20 apartments are needed to be sold to repay all of them. As of today, 24 apartments are already sold, over 65% of the total. Current sales allow Sponsor to repay all outstanding loans in total.
Project Sponsor is looking to raise the capital necessary to finance the completion of construction works, waiting to receive final payments from buyers once the apartments are delivered. Project’s total cost is EUR 5 678 350 and Sponsor contributed with an equity stake of EUR 900 000. Remaining funds were financed by a bank loan, Crowdestate loan and pre-sales.
Crowdestate investors have the opportunity to earn a fixed annual interest of 12.5% of the invested capital, through monthly interest payments and capital repayment at the end. Project duration is 11 months.