Funded
  • Deadline
    10.01.2023
  • Start of investment period
    20.01.2023
  • Start time
    10.12.2022 09:15
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    31.10.2023
  • Remaining term
    8 months
  • Expected rate of return
    16% p.a.
  • Expected cash yield
    %
  • No of investors
    263
  • Goal
    €250 000

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 10-12 tranches, based on the progression of works and the pre-sales. Currently, the total loan balance financed through the platform is EUR 1,471,000 through 7 previous tranches. This will be the 8th tranche of the project in the amount of EUR 250,000. From the total amount requested by the Sponsor, EUR 100,000 will be used to partially reimburse the 1st tranche of the project in the amount of EUR 250,000 with due date in February 2023. Another, EUR 100,000 will be used for the same purpose, from Sponsor's additional own equity.

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

The investment tenor for this tranche is up to 10 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 by a 8th 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    2.91 million were invested additionally from Sponsor’s equity, pre-sales and Crowdestate’s loans.

Crowdestate

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