Exited
  • Deadline
    11.09.2020
  • Start of investment period
    07.09.2020
  • Start time
    03.09.2020 12:30
  • Asset class
    Residential
  • Investment type
    Development
  • Investment end date
    29.01.2021
  • Remaining term
    Overdue 90+ days
  • Expected rate of return
    10.7% p.a.
  • Expected cash yield
    %
  • No of investors
    436
  • Goal
    €95 000

Executive summary

Crowdestate investors have financed the acquisition 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 third round the Sponsor intends to raise EUR 95,000 to finance the construction. Crowdestate investors' total loan risk will be EUR 345,000.

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 and the construction has begun - internal demolition work has been completed and construction of a new concrete ceiling and floors has begun. 7 apartments have been booked by buyers.

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 value of the property will increase during the construction. Potential sales value of all apartments in the finished state is EUR 595,000.

The loan maturity is up to 5 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.

Crowdestate

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