The Lake Home 12, Sibiu, Romania (II)
39 apartments in Sibiu, Sibiu County
- Start of investment period19.08.2022
- Start time18.07.2022 07:35
- Asset classResidential
- Investment typeDevelopment
- Investment end date31.10.2023
- Remaining term10 months
- Expected rate of return12% p.a.
- Expected cash yield%
- No of investors298
- Goal€107 700
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. The 1st tranche of EUR 120,000 was raised in June 2022. This will be the 2nd tranche of the investment opportunity in the amount of EUR 170,000.
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 the 2nd tranche of EUR 170,000, the Sponsor is offering the 1st rank mortgage over 2 land plots that will be used for the development of a future residential project with a total area of 5350 sqm (2600 sqm & 2750 sqm) located in Sibiu City and 2nd rank mortgage over a private penthouse already completed within 1st phase of the development. According to the attached appraisals, the minimum market value of the land plots is EUR 256,800 (evaluated by Neoconsult Valuation Romania) and for the penthouse is EUR 257,000 (evaluated by Nai Romania, Appraisal and Valuation). The total value of assets available for securing this current loan is EUR 393,800, providing the investors of this second tranche with a LTV 43%.
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 collaterals, 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.