Funded
  • Deadline
    20.05.2022
  • Start of investment period
    11.05.2022
  • Start time
    07.05.2022 07:45
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    30.12.2022
  • Remaining term
    7 months
  • Expected rate of return
    11.2% p.a.
  • Expected cash yield
    %
  • No of investors
    59
  • Goal
    €80 000

Executive summary

The purpose of the current investment opportunity is to continue with the funding of Rae põik 2 terraced house construction. In this stage it is planned to build the next terraced house with 9 apartments at Rae põik 2, Rae municipality, Harju county, Estonia. While the project is located just outside Tallinn (capital of Estonia) city limits, it is 10 km away from Tallinn city centre.

The Sponsor, Väike-Rae Arenduse OÜ, intends to raise from Crowdestate investors 895,000 euros in several investment rounds. The funds will be used to finance the construction of Rae põik 2. The amount of the current sixth investment round is EUR 80,000. The loan will be repaid from the apartment sales revenue. 

The construction is in progress (about 66% is completed). The construction deadline is Autumn 2022.

6 apartments have been pre-sold. For successful exit it has to be sold (i.e. real right sales contracts signed) 6 apartments. The average price of 3 unsold apartments is 246,500 euros.

Investment period is 8 months (30.12.2022)

Fixed interest rate of the loan is 11% p.a. There is no periodic interest payments. Accrued interest is payable at the signing of apartments' sales contracts or at the end of the loan period latest.

The loan is secured by a 1st mortgage on Rae põik 2 property with a row house building under construction.   

The value of the collateral is currently 859,100 euros (incl. unbuilt land plot + actual construction works). LTV is currently 68% and it will reach up to 77% when funding is completed. 

The Sponsor has completed the terraced house of neighboring Rae põik 6 and 8 plots and repaid Crowdestate investors' loan on time.

Crowdestate

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