Raiheina tee 35
Mortgage secured residential development project
- Start of investment period26.04.2022
- Start time16.04.2022 09:20
- Asset classResidential
- Investment typeDevelopment
- Investment end date06.01.2023
- Remaining term6 months
- Expected rate of return12% p.a.
- Expected cash yield%
- No of investors402
- Goal€160 000
Our new project offers an opportunity to finance the purchase and construction of Raiheina St. 35 single family house development. The property is located in on the border of Viimsi municipality and the city of Maardu, approx. 14 km (20 - 25 minutes drive by car) from Tallinn. There are mostly private houses in the direct neighborhood.
Investors will be offered an opportunity to finance the purchase of the property and further construction in total amount of 260,000 euros. In the current first round the Sponsor is looking for 160,000 euros to finance the purchase of Raiheina St. 35 property. Funds from subsequent rounds will be used to finance the completion of construction in the amount of up to 100,000 euros. Construction is underway - the house box has been erected and insulated, doors and windows have been installed. It is necessary to complete the facade finishing, electrical work, interior finishing and landscaping. It is estimated that 60% of the construction is completed. The construction deadline is July / August 2022.
The fixed interest rate is 12% p.a. There are no periodical interest payments. The investment period is 31.12.2022 (up to 8 months). The Sponsor has the right to extend the loan period for 3 month with the interest rate of 13.5% per annum for the extension period.
Residential area of thee house is 17.,7 m2. According to the appraisal report, the market value of the completed house is 426,000 euros and the current value (at about 60% readiness) is 278,000 euros. The ratio of the loan principal to the market value of the collateral (LTV) after the first funding round is 58%. LTV is up to 69% at the end of construction.
The loan is secured by a first-rank mortgage on Raiheina St. 35 property.
Loan will be repaid from the sales revenue of Raiheina St. 35 private house.