Funded
  • Deadline
    01.11.2021
  • Start of investment period
    18.10.2021
  • Start time
    15.10.2021 12:30
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    02.05.2022
  • Remaining term
    5 months
  • Expected rate of return
    9% p.a.
  • Expected cash yield
    %
  • No of investors
    301
  • Goal
    €145 000

Executive summary

The purpose of the current investment opportunity is to continue financing the next phase of Rae põik terraced houses project. In this stage is planned to build the next terraced house with 9 apartments at Rae põik 10, Rae municipality, Harju country, Estonia. While the project is located just outside the Tallinn (capital of Estonia) city limits, it is 10 km away from Tallinn city centre.

The Sponsor, Väike-Rae Arenduse OÜ, intends to raise with current investment round EUR 145,000 from Crowdestate investors, which will be used for financing the construction costs at Rae põik 10. The source of loan repayment is sale of completed apartments or refinancing through bank loan. 

The construction of the Rae põik 10 terraced house has been already started. The deadline for the completion of the project is Spring 2022.

All 9 apartments are sold with notarised pre-sale agreements . For successful exit has to be sold 6 apartments.

Loan term is scheduled up to 7 months

The investment earns a fixed interest rate at 9% p.a. There is no periodic interest payments.

The loan is secured by a first rank mortgage on 3 residential land plots of Rae põik 6, Rae põik 8 and Rae põik 10 with valid construction permit of identical row houses. The construction of terraced house at Rae põik 6 is 100% completed and all apartments are sold with pre-sale agreements. The construction of terraced house at Rae põik 8 is 71% completed and also all apartments are sold with pre-sale agreements. The construction of terraced house at Rae põik 10 is 58%.

According to evaluation reports and construction supervision acts current value of the collateral is EUR 2,110,957. According to that, the ratio of total amount of liabilities and collateral value (LTV) is 61,7%.

Crowdestate

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