ERFURT CENTRAL

 Refinancing
Erfurt, Germany
Status
Done
450 000 € (100%)
450 000 €
107 days left
Term: 12 months
Interest payment schedule: Biannually
6%
Annual yield
-
LTV
Second
Mortgage rank
Yes
EVOEstate skin in the game

EvoEstate description:

The funded amount on our platforms can differ, because this is the first project launch with iFunded and we are currently improving the integration.

This loan is given to a company which owns 2 apartment buildings, with 32 residential units, out of which 32 is rented out. The total financing of this project contributes to 3.490.000 € out of which 440,000 € is owned by the borrower (12.6%), 450,000 € will be provided by iFunded (12.9%) and 2,600,000 € is leveraged with the bank loan (74.5%).

We are investing in this project, because we want to increase our position in Germany as today it's bellow 6% of total portfolio. While looking individually into this deal it might not look as attractive as the deals in Spain or Baltics for comparison as it holds 2nd rank mortgage, we factor in that it's Germany and obtaining capital from the bank is easier and cheaper compared to higher-intrest countries, but it also means that the economic risk of the country is also lower.

This financing will be used a refinancing to a part of equity and later used for renovation and sales marketing expenses.

The general risks of this project consist of:
1) Falling real estate market prices in Erfurt.
2) Unability of the borrower to meet financial obligations on the bank loan.
3) Erfurt real estate market cooling down and harder to find the future buyer.

An important aspect looking at future sales price is that current net rental income generates 196,696 €. Which is equal to 5.63% of total value- which would be competitive even to the deals of Brickstarter short-term rental, especially in Germany. If we look at the mortgaged value including both 1st (bank) and 2nd rank mortgages (iFunded) it would result to 3,050,000€ and the net rental income against mortgaged value would be equal to- 6.4% which would be a more attractive purchase for the buyer in case of default and increase liquidity.

iFunded description:

Two apartment buildings in the heart of Erfurt

Investment Overview
 

Under the project, the Issuer intends with the subordinated loan of 450,000 euros to acquire new objects as well as maintenance and rehabilitation measures (eg renovation of common areas and construction of parking spaces) at the two apartment buildings in Erfurt making. Then the objects are to be marketed. The sale of the properties, a return should be achieved. Due to the current rental income, it is possible for the Issuer to make the first interest payment is already late June 2020th The subordinated loan (including interest) may ultimately be repaid by the sale of two properties
 

iFunded description:

Two apartment buildings in the heart of Erfurt

Investment Overview

  • Fixed interest rate of 6% p.a.
  • 12 month term (option to extend 2x 6 months)
  • Receive interest payments every six months
  • Two residential apartment buildings in Erfurt
  • 32 apartments with a 100% occupancy rate
  • Zero fees for investors

Properties

 

ProjectTwo apartment buildings
UsageResidential
Living space2,048 m²
Occupancy rateFully occupied with paying tennants
LocationBonifaciusstrasse and Gustav-Adolf-Str.
Funding-Goal450,000 €
Duration12 months (option to extend)
RepaymentSale of one of the buildings
Interest rate paymentsEvery six months
SecuritySecond Rank Land Charge
Status
Done
450 000 € (100%)
450 000 €
107 days left
Term: 12 months
Interest payment schedule: Biannually
6%
Annual yield
-
LTV
Second
Mortgage rank
Yes
EVOEstate skin in the game