• Deadline
  • Start of investment period
  • Start time
    25.06.2022 08:30
  • Asset class
  • Investment type
  • Investment end date
  • Remaining term
    13 months
  • Expected rate of return
    12% p.a.
  • Expected cash yield
  • No of investors
  • Goal
    €120 000

Executive summary

With this investment opportunity, the Crowdestate investors will have the opportunity of investing in a mortgaged secured senior construction loan in a total amount of EUR 450,000 arranged in 3 tranches. This is the 1st tranche of the investment opportunity for EUR 120,000.

The purpose of the loan is to finance  the needed capital for ongoing construction works, completion of the related utilities and landscaping works for the residential project, named ‘’The Lake Home”, consisting of 39 apartments within building B1, located in 12 Tractorului Street, Sibiu City, Sibiu County, Romania. This will be Phase 2 of a larger 494 apartments, 34 villas, 1 kindergarten, 1 sport & spa center and 3 restaurants development on a total land of ~53,000 sqm out of which ~20,000 sqm of green spaces and a park. Phase 1 including 42 apartments was completed and almost sold completely (more than 85% from the total units) in April 2022. 

To secure only the 1st tranche of EUR 120,000, the Sponsor is offering the first-rank mortgage over a private penthouse already completed within Phase 1 of the development, penthouse developed on 2 floors, respectively 1 apartment consisting of 4 bedrooms, 2 dressings, 1 living room, 4 bathrooms, 1 kitchen plus dining area, 3 hallways with an usable area of 160,9 sqm plus a terrace of 45,5 sqm. According to the attached appraisal, the minimum market value of this collateral is EUR 257,000 (evaluated by Nai Romania, Appraisal and Valuation). Therefore, the LTV for the 1st tranche is ~47%. For the remaining 2 tranches, the Sponsor will present new collaterals. 

The loan period for this opportunity is 14 months, with a Sponsor's option to extend the loan period by 4 months. The interest rate of the loan is 12% per annum. If the Sponsor uses the right to extend the loan, the interest rate for extension rate is 14%. The principal and interest payments will be made at the end of the loan period.

The loan will be repaid from the sale of the apartments when finalized, sale of the mortgaged collateral, respectively the penthouse already completed from 1st phase, sale of other land plots owned by the Sponsor,  refinancing or from  the Sponsor's operating revenues.


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