Detail Descripton

Why this is not skin in the game project:

This is not skin in the game project due to the following reasons: the property is located in the countryside which makes it difficult to liquidate. Furthermore, the LTV ratio is too high for the region and the returns.

Similiar project that had higher returns and LTV of 19%:
https://evoestate.com/project/161/warehouse-daugavpils/

Nordstreet description

Introduction

Nordstreet guarantees safe investment:

• The loan-to-value (LTV) ratio of the project will not exceed the LTV ratio provided in the project description if the project is funded in stages;
• If the required financing amount is not collected before the start of the project, all investments will be returned to the investees. If borrower request for a smaller amount of the loan grant - funding can be considered successful completion of entering a lower amount.

Purpose of financing:

• The purchase of buildings and building renovation

Loan protection:

• Pledge of land and building (warehouse) on primary mortgage
• Additional protection: personal surety of the supervisor

Project return on investment and interest payment

• Investing from 100 €
• Annual investment return on the project from 10.5% (investment details are described in section Detailed information)
• Interest of the loan is calculated from the end date of the auction and is paid monthly.

Detailed Information

Object of the loan

The object of the loan is real estate used for the operation of the company, which needs financing - to finance the purchase of the building located on the pledged land, buildings renovation and the internal workflow. In order to meet the financing needs, the Developer pledges the existing real estate located at Vilties str. 20, Nemeikiai village, Utena county.

Loan Terms

• Loan amount: € 121,000
• Loan term: 12 months
• Minimum loan term: 3 months
• Value of the mortgaged property: € 199,000
• LTV (Loan-to-value ratio): 60%
• Project risk: A (low)
• Loan Protection:  Primary order Mortgage
• Additional protection: personal surety of the supervisor

Interest - annual return on investument

• Investing from 100 € - interest 10,5% 
• Investing  from 2,500 € - interest 11%
• Investing from 7,500 € - interest 11.5%
• Investing from 20,000 € -  interest 12%

Loan protection Information

Loan pledged property - land owned and buildings owned by it and other buildings located at Vilties str 20, Nemeikščiai village, Utenos county, Lithuania whose property value is 199 000 € according to the certificate.

• Address of the mortgaged property: Vilties g. 20, Nemeikiai village, Utena d. week Utenos sen.
• Property type: buildings and land
• Property type: 1) Land / other / industrial storage areas, 2) building - warehouse, 3) yard structures
• Value of the mortgaged property: € 199,000
• Documentation: Summary of the Property Valuation Report. A full property valuation will be uploaded in the second week of September
• Date of report: 29th of July. 2019
• Assessor: UAB Verslavita
• Mortgage: A first line mortgage
• Additional protection: personal surety of the supervisor. 

Project Developers

The project is owned by UAB "Norbalta", whose owners and shareholders administer the company's real estate. The company's current activities include overseeing, leasing, operating and administering real estate.

Finance

Loan

Financing requires € 121,000 amount to be used for the purchase and renovation of the building.

Loan collateral

First-line mortgage on existing real estate - Mortgage.

The value of the property is EUR 199,000 (based on the appraisal below). A full valuation of the property is under preparation.

Additional protection: personal surety of the supervisor.

Investment risk: A (low)

LTV: 60%

Mortgaged property

The value of the pledged property is € 199,000:

1) 0,5632 sq.m land / other / industrial warehousing sites with area

2) 150.83 sq.m building - warehouse with area

3) other engineering structures - yard structures

Interest:

• Investing from 100 € - interest 10,5% 
• Investing  from 2,500 € - interest 11%
• Investing from 7,500 € - interest 11.5%
• Investing from 20,000 € -  interest 12%

Interest on the loan is calculated from the end date of the auction and is paid monthly.

Loan Period

Loan term: 12 months (with option to repay earlier, but not earlier than 3 months).

If the Borrower repays the Loan Amount or part thereof less than 3 months after the due date of 12 months, the Borrower undertakes to pay interest to the Lender for a period of 3 months. After a period of 3 months, the Borrower may repay the loan at no additional charge.

Loan repayment period

Expected loan start date: 2019 09 18

Expected loan repayment date: 2020 06 18 - 2020 09 18