Väljamaa tee 8 ja 10, Hüüru küla, Saue vald
2 one-family houses near Tallinn, Estonia
- Start of investment period21.09.2021
- Start time16.09.2021 07:20
- Asset classResidential
- Investment typeDevelopment
- Investment end date15.09.2022
- Remaining term10 months
- Expected rate of return9.5% p.a.
- Expected cash yield%
- No of investors170
- Goal€80 000
The Sponsor is building three single-family houses at once - Väljamaa tee 7, 8 and 10 (Hüüru village, 15 kms from Tallinn) - and wants to raise 80,000 euros as a mortgage loan. Loan will be used to finance the construction of Väljamaa tee 7 house and partly the construction of Väljamaa tee 8 and 10 houses. The loan is secured by a first-rank mortgage on Väljamaa tee 8 and 10 immovables with a market value of 172,000 euros. The LTV of the project is 46.5%.
Immovables are located in Hüüru village, Saue municipality, 15 km from Tallinn city center (or 20 - 25 minutes by car). Plots are located at Mõisaniidu residential area developed by the Sponsor himself - 29 plots of single-family houses with roads and utility networks. All plots have been sold.
All three houses are architecturally identical and have a living area of 127.6 m2. The Sponsor will build prefabricated houses and sell them to end users. Investors' loan with interest will be repaid from the sales revenue. Pre-sales contract has been signed for the sale of Väljamaa tee 7 house. From his own equity the Sponsor has made advance payments to the factory for prefabricated house elements. Construction of foundations of Väljamaa tee 8 and 10 have been also funded from Sponsor's own equity.
Loan period is 12 months and interest rate is 9.5% on an annual basis. Interest is paid as a lump sum at the end of the loan period or when the houses are sold.
The planned sales prices of the house is 299,000 euros.