Funded
  • Deadline
    31.01.2021
  • Start of investment period
    29.01.2021
  • Start time
    19.01.2021 12:00
  • Asset class
    Residential
  • Investment type
    Rental
  • Investment end date
    29.01.2022
  • Remaining term
    10 months
  • Expected rate of return
    10% p.a.
  • Expected cash yield
    %
  • No of investors
    599
  • Goal
    €250 000

Executive summary

Crowdestate investors have financed the acquisition and rebuilding of the office-building located at Väike kaar 33c in Tartu (second largest city in Estonia). Total investment amount was EUR 345,000. Construction work has been completed and 14 serviced apartments are ready. During January 2021, the Sponsor will enter into real right contracts with 6 apartment buyers. 2 more apartments will be sold in March and May 2021. The Sponsor wants to keep 6 apartments and, once the permit of use has been issued, rent them out and refinance Crowdestate investors' loan in 12 months at the latest. In this context, the Sponsor has offered the opportunity to partially refinance, in the amount of EUR 250,000, previous loans from Crowdestate investors.

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 construction has been completed and the Sponsor is obliged to obtain a permit of use by June 30th, 2021 at the latest. The attached pictures of the interior were taken on January 19th, 2021.

There are total of 14 serviced apartments ranging in size from 12.7 to 32.9 m2 and total sellable area is 280.1 m2. 8 notarized pre-sales contracts has been signed. 

Loans from Crowdestate investors will be secured by a first mortgage on Väike kaar 33c eight apartments with toal area of 170.6 m2 and market value EUR 402,000. Investors' risk will be EUR 1465 per m2 and LTV is 62%.

The loan maturity is up to 12 months, interest rate is 10% 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 or/and in refinancing with long-term bank loan.

Crowdestate

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