EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Loan To value
Real estate company has an option to buy a very good house in El Campello, in a very good area of coves, between the city of Alicante and Benidorm. The owners earned the asset by heritage and are keen to sell below the market value. It is in need of renovation but owners don't want to do it, they are too old and don't want to spend money.
The option on the house is to sell it for 320.000 euros. The house is appraised at 478,000 euros. The renovation it needs is just over 18,000 euros. The real estate company pays for the renovation. In addition, they will use additional +100,000 euros in cash for the complete purchase and other expenses. Therefore the need for an additional loan of 220.000 euros (less than 50% of LTV) . Real estate agents are confident that it could very easily sell for more than 450,000 euros. With renderings of the reform, and putting it on the market from now on, the plan to sell the property in 3 or 4 months, making a profit of 100,000 euros.
Sierra Verde SL is a young real estate development company operating in Spain, precisely in the areas of Alicante, Altea, Denia.
Mostly focused on the development of luxury villas in rural or coastal areas with high potential of growth. They are also active in flipping operations buying undervalued assets in strategic areas, refurbishing and offering back to the market to still very attractive prices
Loan protection collateral
The property under valuation is located in one of the most touristic areas of the city, with the presence of many buildings and sites that are key to attracting tourists.
Strengths and risks
The first order of real estate pledge - mortgage.
The project is near the end.
In 2020, due to the quarantine introduced caused by Covid - 19, the company had a loss.
The annual interest rate payable by the borrower is 10%.
A young company.
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.
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Invest in Confrides street 19, Campello municipality, Alicante city, Spain,Alacant, Spain