Published
  • Deadline
    31.08.2022
  • Start of investment period
    01.01.1970
  • Start time
    05.08.2022 12:25
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    31.08.2023
  • Remaining term
    12 months
  • Expected rate of return
    16% p.a.
  • Expected cash yield
    %
  • No of investors
    187
  • Goal
    €175 000

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 in a total amount of up to EUR 3,000,000, arranged in 6-12 tranches, based on the progression of works and the pre-sales. 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, the 4th tranche of EUR 150,000 in March 2022, the 5th tranche of EUR 150,000 in April 2022 and the 6th tranche of EUR 150,000 in June 2022. This will be the 7th tranche in the amount of EUR 175,000.

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

The investment tenor for this tranche is up to 12 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 7th 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    2.7 million were invested additionally from Sponsor’s equity, pre-sales and Crowdestate’s loans.

Crowdestate

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