Land plot with existing cash flow and development potential

 Buy to Let
Tallinn, Estonia
Status
Done
272 550 € (100%)
272 550 €
Interest payment schedule: Part monthly and another part at the completion
7.45%
Annual yield
-
LTV
No
EVOEstate skin in the game

Why this is not skin in the game project:

This project has significant 7.45% rent yield, which even after Reinvest24 fees remains quite high.

However, these are the reasons why we are not investing in this project:

1. The client & future potential client. Tennant Starship technologies is a startup which was founded in 2014 in Estonia. Currently their headquarters are in US and most of its investors are also from there. There's a potential risk that with further growth this startup can relocate its engineering team to US as well or be acquired or even they would need a larger plot to run tests. Given these circumstances it would be hard to find another tennant who could utilise a landplot and pay such a high rent. It's unclear how large is the warehouse.

2. Capital exposure. We have already invested in this project, which is located right next to this one. Investing in this project would decrease our investments' portfolios diversification.

Capital growth could be lower, nobody can accurately predict what will the market prices be grow/decrease to in 4 years. 

Please note that Reinvest24 will charge 2% deposit fee which will impact your returns.

Reinvest24 description:

KEY FACTS:

  • Existing cash flow with a 7,45% net rental yield from existing rental contract, starting from day one
  • Earn cashflow from the day of making the investment
  • Rental contract is with one of the leading technology companies in Estonia
  • Development potential for this property

Given property is located in Mustamäe district, Tallinn, Estonia. The main value of this property is the spacious land plot that has a great potential for new development. The projecting terms allow for construction of brand new two-story industrial warehouses and stock offices. The land also includes a territory that is rented out to one of the leading technology companies in Estonia.

Mustamäe is well connected with the city center, which is only 6,5 km away from our property. Estonia’s largest Technical University (TTU) is located nearby, attracting students and scholars on a daily basis. Properties in the area promise great capital growth in the coming years.

Furthermore, the area is also well-known for it´s Tehnopol science and business centre, Universities, as well as trade outlets and community services. The industrial part of the area is also evolving rapidly with a large number of production and warehouse buildings in the immediate vicinity.

Planned expansions of Tallinn Technical University and its Institute of Cybernetics, as well as an expansion of the nearby Technopol and science park will make this area one of the most sought-after technological and industrial hubs in Tallinn in the near future. The Mustamäe district administration of Tallinn has confirmed building the extension of Vinkli street up until Kadaka street, making this property logistically much more approachable and valuable in the future.

Investing in this area of Tallinn right now is a wise move considering all the planned developments.

 

Project originated by:

The property for investment with the address Vinkli 9, Tallinn, Estonia - is a plot of land with great development potential. Located in the up-and-coming district of Mustamäe, the 6716 m2 plot with its warehouse provides immediate cash flow with a 7,45% net rental yield from existing rental contract with one of the leading and innovative technology companies in Estonia. The latest appraisial report (03.05.2019) conducted by Arco Vara local real estate experts, valued the property at 288 000 EUR. Our acquisition price, including all costs, is 272 550 EUR. Investors will enjoy passive income from day one. Our investment strategy includes purchasing the land with the existing rental agreement, which promises a 7,45% Net Rental Yield. The exit strategy will be selling it do developers within 2-3 years as the area evolves even more, since the projecting terms allow for construction of an industrial park on the land plot in the near future. Estimated capital growth at least 7,3% The funding total includes: Property purchase price 270 000€ Collateral agent, notary fee, administrative costs 2550€

Status
Done
272 550 € (100%)
272 550 €
Interest payment schedule: Part monthly and another part at the completion
7.45%
Annual yield
-
LTV
No
EVOEstate skin in the game