Detail Descripton

Funding requires an amount of € 245 000, which can be split into two stages and the funds raised for funding will be used to meet contractual obligations on the current creditor, as well as for increasing company capital. This decision will give the borrower time to sell the assets under current market price, meet existing obligations and complete preparations for the sale of the assets.

Debtor

Company title OU Erel trading group

Company code12216805

Company website http://www.leonardogolf.ee/

Erel Trading Group LTD, engaged in real estate contracting, purchasing, sales and development. Registred capital 0,6 mln EUR. Shareholders AS Erel group (396 000 capital ownership), Faustini Europe SA (60 000 EUR capital ownership), osauhing Alminger (24 000 EUR capital ownership), OU Drevor investments (120 000 EUR capital ownership). Currently company is developing real estate projects, some of them are on sale. Company is specialized in residential real estate development (apartments, villas, etc). Company's total assets over 6 million EUR, equity ratio is more than 35%.  Real estate selling price is approx. 1 800 - 2 100 EUR with VAT.

Loan protection collateral

Pledged property:

• 1,143 m2 size land plot at Niidu tee 10, Pärnu city, registration number 3925006.
• 1,136 m2 size land plot at Niidu tee 14, Pärnu city, registration number 3926006.
• 1,641 m2 size land plot at Loo tee 5, Pärnu city, registration numbers 3925106.
• 1,604 m2 size land plot at Loo tee 13, Pärnu city, registration number 3925606.
• 1,130 m2 size land plot at Kasteheina tee 9, Pärnu city, registration numbers 3926906.
• 1,223 m2 size land plot at Kasteheina tee 11, Pärnu city, registration number 3925206.
• 1,379 m2 size land plot at Ristiku tee 9, Pärnu city, registration number 3924306.
• 1,503 m2 size land plot at Elu tee 22, Pärnu city, registration number 3926206.
• 2,100 m2 size land plot at Elu tee 34, Pärnu city, registration number 3924906.
• 1,226 m2 size land plot at Elu tee 36a, Pärnu city, registration number 3912006.
• 1,468 m2 size land plot at Elu tee 28, Pärnu city, registration number 3927706.
• 1,598 m2 size land plot at Elu tee 26, Pärnu city, registration number 3924406.
• 1,661 m2 size land plot at Elu tee 24, Pärnu city, registration number 3924606.
• 0,940 m2 size land plot at Elu tee 36, Pärnu city, registration number 3928506.
• 1,547 m2 size land plot at Loo tee 3, Pärnu city, registration number 3927206.
• 1,468 m2 size land plot at Loo tee 1, Pärnu city, registration number 3928306.

Value of mortgaged property: € 491 000

About Leonardo Golf Village, the location of the property:

The Leonardo Golf Village is a one of a kind project in Pärnu. It consists of 10 apartment buildings and 69 private houses. It is located in a rapidly developing area and constitutes one of the most notable new developments in Pärnu. Everything you need for life is at your fingertips. The Leonardo Golf Village offers the solution for a new lifestyle, a unique location in the midst of greenery and quite; bus stop 50 m, kindergarten and supermarket 300 m, golf track and beach 500m.

Strengths and risks

Strengths:

• The borrower made payments on time and without delay. (current loan at Nordstreet)
• The first order of real estate pledge - mortgage.
• The project is near the end.

Weaknesses:

• Borrower 's activities are in a competitive sector.
• In 2020, due to the quarantine introduced caused by Covid - 19, the company had a loss.

Possibilities:

• The annual interest rate payable by the borrower is 11.75%.

Threats:

• Loan refinancing.
• Rising cost of building materials.

NORDSTREET takes the following measures to ensure a safer investment:

• The loan to value ratio of the project will not exceed the LTV ratio provided in the project description, including in cases when the project will be financed in stages.
• If the required amount of funding is not collected before the start of the project, all investments will be returned to the investors. Upon application by the Debtor, the financing may be considered to have been successfully completed with a smaller amount collected, the financing of the project may be divided into several stages and / or the financing period of the project may be extended. In these cases, NORDSTREET informs the funders and publishes the information on the completion of the project with a smaller amount, the division of the project funding into several stages or the extension of the project funding period on its website together with other information about the project.
• By investing in a project, financiers acquire rights of recourse (claim rights). NORDSTREET may provide the financiers with the possibility to transfer these claim rights to other users of the platform on the Secondary Market in accordance with the User Terms.
• The activities of UAB Nordstreet are supervised by the Bank of Lithuania and UAB Nordstreet is included on the Public List of Operators of Crowdfunding Financing Platforms administered by the Bank of Lithuania.