EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Loan To value
Purpose of the loan
The funding required for this phase is EUR 117 500, which will be used for the development and construction works of the project. Work has already begun on the buildings with the existing permit issued. The loan will be repaid from the proceeds of the sale of the property or by refinancing at another financial institution.
About the project
Currently, construction is in progress and 12 houses are being built, each with an area of 100 m2, invested up to 400 TEUR in the company's own funds. Funds raised will be used to finance construction work, as the materials have been purchased in advance. Reservations are already in progress. More about the project https://j7.lt/.
UAB "Ritata" engaged in real estate development in Monciškių, Latgalių and Baltų streets in Palanga. In 2021Y balance sheet assets amounted to 1.8 million EUR based on the submitted financial statements of 2021 IIIQ, including fixed assets of 0.4 million EUR, current assets 1.49 million EUR, equity 46 TEUR, sales 198 TEUR, net profit 35 TEUR.
Second real estate mortgage on existing real estate (land under development). The loan will be repaid upon sale of the company's development assets, from the company's profits or after refinancing the loan. It should be noted that houses that have not been appraised have already been started and are under construction, so it is likely that the total value will be much higher after the registration of the buildings and the appraisal.
The first order of real estate pledge - a mortgage is also secured on the Nordstreet platform, where a loan of EUR 235,000 was granted. The total amount of loans granted will not exceed EUR 352 500.
LTV: not more than 75% (of the pledged value of the land plots).
Pledged property: 9 plots of residential land with a total area of 1.9816 ha, located in Baltų, Monciškių, Šaltinio str. Palanga City Municipality, Lithuania.
Value of pledged property: EUR 470 000
Between Palanga and Šventoji. The neighbourhood is being developed in a quiet location, halfway between the major seaside resorts, making it a great place to appreciate privacy and tranquillity without the added hustle and bustle of the city. Convenient location for bicycle trips to Palanga or Šventoji, asphalt road to the residential area and paved path to the door.
The borrower made payments on time and without delay. (current loan at Nordstreet)
The second real estate mortgage
The borrower has been operating for less than a year.
Borrower's activities are in a competitive sector.
The LTV rate of the project is high.
The annual interest rate payable by the borrower is high.
Uncertain economic situation.
The property is in the development stage.
The 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.
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Invest in Land project in Baltų, Monciškių, Šaltinio str. Palangos city municipality, Lithuania (2 nd rate mortgage),Palanga, Lithuania