Funded
  • Deadline
    05.05.2022
  • Start of investment period
    19.05.2022
  • Start time
    08.04.2022 10:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    31.07.2023
  • Remaining term
    12 months
  • Expected rate of return
    16% p.a.
  • Expected cash yield
    %
  • No of investors
    293
  • Goal
    €150 000

Executive summary

The goal for this opportunity is to finance the construction of an apartment building, with 110 apartments, situated at 103A, Timisoara Blvd., Bucharest, district 6, Romania. This will be Phase 2 of a larger 230 apartment development on a land of 5,000 sqm. Phase 1 including 69 apartments was completed and sold completely in 2019. 

Crowdestate investors will have the opportunity to invest in a mortgaged secured senior construction loan (for more information regarding senior debt, please check out this blog post - https://blog.crowdestate.eu/en/2020/secured-loan-definition/) in a total amount of up to EUR 3,000,000, arranged in 6-12 tranches, based on the progression of works and the presales. The 1st tranche of EUR 250,000 was raised in February 2021, the 2nd tranche of the project of EUR 350,000 was raised in August 2021, the 3rd tranche of EUR 250,000 in December 2021 and the 4th tranche of EUR 150,000 in March 2022. This will be the 5th tranche in the amount of EUR 150,000.

The source of reimbursement will be the sale of the units when finalized. 

The investment tenor for this tranche is up to 15 months. The interest rate is 16% p.a. and it will be paid in semiannual installments of 8% p.a. interest, with the remaining difference at the end of the loan period or at reimbursement, whichever comes first. The loan will be secured with a 5th rank mortgage on the land and future buildings (with previous ranks in favor of previous tranches investors). The land & existing structure (underground) was initially evaluated for EUR 1.3 million by Colliers International (using the residual income method) and ~EUR 1.8 million were invested additionally from Sponsor’s equity, presales and Crowdestate’s loans.

Crowdestate

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