Exited
  • Deadline
    06.11.2020
  • Start of investment period
    06.11.2020
  • Start time
    29.10.2020 09:40
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    01.07.2021
  • Remaining term
    Overdue 1-90 days
  • Expected rate of return
    12.5% p.a.
  • Expected cash yield
    %
  • No of investors
    462
  • Goal
    €200 000

Executive summary

This fifth and last fundraising tranche aims at raising up to 200 000 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 800,000 Eur (including the current fifth tranche).

In recent months, construction work has progressed to:

  • Completion of internal plasters.
  • Completion of external intonations and internal hydraulic systems.
  • Electrical system completed.
  • Thermal plants completed.
The only sales already confirmed to date amount to over 65% of the apartments. Once the construction is finished, these will allow you to repay the bank loan and have residual liquidity of approximately 1 300 000 Euros. More than enough to repay the loan to Crowdestate.

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 8 months.

Crowdestate

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