Väike kaar 33c, Tartu

Our new project offers investors an opportunity to finance the acquisition and alteration of the office-building located at Väike kaar 33c in Tartu (second largest city in Estonia). The Sponsor plans to convert the building into a short-term accommodation building (serviced apartments). With the current funding round the Sponsor intends to raise EUR 175,000 to finance purchase of the property.

The building is located in Tammelinna district approx. 200 m from Tartu University Hospital (Maarjamõisa). There is a strong demand for small rental apartments in the area. The sponsor plans to change the interior layout of the building and then sell serviced apartments to investors.

After the construction work there will be 14 serviced apartments ranging in size from 12.7 to 32.9 m² and total sellable area is 273.5 m². A building permit for converting the building into serviced apartments has been issued in January 2020.

Loans from Crowdestate investors will be secured by a first mortgage on Väike kaar 33c property with a market value of EUR 300,000.

The loan maturity is up to 12 months, an interest rate of 10.5% per annum and interest is payable at the end of the period or together with loan principal by signing of real right contracts. Loan will be repaid from apartment sales revenue.

In addition to the current funding round, the Sponsor intends to finance construction work in following rounds in an amount of approx. EUR 170,000.