Pending settlement
  • Deadline
    16.06.2021
  • Start of investment period
    01.01.1970
  • Start time
    02.06.2021 07:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    10.06.2022
  • Remaining term
    11 months
  • Expected rate of return
    11% p.a.
  • Expected cash yield
    %
  • No of investors
    768
  • Goal
    €309 000

Executive summary

Our new project offers an opportunity to finance in the amount of 309,000 euros the purchase of Rannamõisa tee 40 property in Tallinn. Approved planning allows construction of two small apartment buildings on Rannamõisa tee 40 land plot (10 apartments). 

Investors' loan is secured by a 1st mortgage on the Rannamõisa tee 40 (RMT40) property and a 2nd rank mortgage on a residential building located at Vasara tee 6 in Rae municipality. A joint mortgage is set on aforementioned properties. Total market value of the collateral is 645,000 euros. The amount of the 1st mortgage encumbering Vasara tee 6 property is 72,600 euros. LTV (ratio of the principal amount of the loan to the value of the collateral) of the project is 59.2%. 

The loan period is 12 months (with extension possibility of 3 months). Interest rate is 11% per annum, payable in a single installment in 12 months latest. 

After the plot acquisition the Sponsor plans to obtain a building permit, build the apartment building and sell all apartments. After obtaining a building permit, the loans raised with current campaign will be refinanced and Crowdestate investors will then have the opportunity to finance the construction of an apartment building too. 

The Sponsor of the project is Uko Paasik who is the manager and owner of the self-named project and construction management company Paasik OÜ. Investors have previously financed Tööstuse 16 and Pärnu mnt 457 projects, where the Sponsor has been the project manager.

Crowdestate

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