Published
  • Deadline
    21.06.2021
  • Start of investment period
    01.01.1970
  • Start time
    20.05.2021 07:00
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    28.02.2024
  • Remaining term
    32 months
  • Expected rate of return
    19.5% p.a.
  • Expected cash yield
    %
  • No of investors
    568
  • Goal
    €990 000

Executive summary

Our new project offers an opportunity to invest in a new Tulbiõie residential development in Viimsi municipality, close to Tallinn Estonia. The project contains 8 semi-detached houses (16 units) and 4 private houses. Investors are offered the opportunity to invest in the equity of the residential development and earn income through profit share. The business idea is to purchase the property (13 plots), design and build utility networks and residential buildings, and sell residential units to end customers.  

Tulbiõie development contains 12 residential plots and one land plot designated for internal transportation and access to buildings. The total volume of the project is 8 semi-detached houses (16 units) and 4 one-family houses, a total of 20 residential units. The total area of land plots is 23,164 m2

Crowdestate investors will finance the project in the amount of 990,000 euros, which is 90% of the equity. Investors earn income from profit participation (76.5% from profit). According to the base scenario, the expected investment return (IRR) is 19.5%. The duration of the project is planned to be 30-34 months. 

In the design and preparatory stage the shareholders’ loans are secured by the first mortgage. After the start of the construction works, the mortgage will be deleted or subordinated to the construction financier. 

Investors will grant a loan to Crowdestate Tulbiõie OÜ (company registered in Estonian Commercial Registry and under Crowdestate control) who will acquire a 90% shareholding in Tulbiõie Arenduse OÜ (SPV established for Tulbiõie development). The latter will buy 13 land plots and implement the development plan. Investors' loans will be repaid from the free cash flow generated from the residential development after all other liabilities have been paid. Investor loans carry equity risk and are unsecured. 

To finance the construction of utility networks and houses, Tulbiõie Arenduse OÜ (SPV) plans to take a loan secured by mortgage. 

Estimated sales price of a box in a semi-detached house is 340,000 euros a one-family house 450,000 euros. The total sales revenue of the project would be 7.24 million euros, i.e. an average of 2,480 euros per sellable living space m2 (incl. VAT). Expected net profit of the development is 780,000 euros.


Crowdestate

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