Dubingiai Diamond Resort

 Development loan
MolÄ—tai,
Lithuania
11%
Annual yield
29%
LTV
Term: 21 months
Mortgage rank:
First
Interest payment schedule:
Monthly

EvoEstate description

Update 10.01.2020 4:47PM (CET): After Nordstreet's mistakes with the loan dates in the description, the loan term which is now fully confirmed is 21months.

Update 10.01.2020 4:30PM (CET): We have received concerns about this listing and wanted to clarify the information and its relevancy. This listing was published back in October, 2019 and Nordstreet has informed that the purpose of this listing was to acquire a large investor for this project. The first thing that can look worrisome is that they are selling this property for 1M EUR, while in the valuation by reputable valuation company Ober-Haus is 1.5M EUR. 

If borrower was in the need for capital quick, lowering the price is a logical step and we have explained in our description that liquidating these horse stables could be complicated and the price drop would be natural. However, the mortgaged assets contribute to additional 1.2M which are more liquid. 

If we take a scenario where we value the Horse Staples (the listing property) for 1M EUR, this would only increase the LTV by 7%, which would raise the total LTV to 36%, which is still very low even for a less liquid property. 

In case LTV would be 36% the risk scoring would remain A level- 50%< LTV in this project is still A level risk.

All things considered, for this investment Nordstreet will be establishing an SPV, where they will mortgage all the assets at the notary. In a such structure, the borrower will not be able to move the asset outside of it, without Nordstreet knowledge, therefore even if the property would be sold, investors could expect early repayment. Lastly, Nordstreet informed that the borrower is not intending to sell the property and the listing should be taken down.

This is a development/business loan to expand the hotel (rated 8.6 on Booking.com).

The loan comes with a first rank mortgage with only 29% loan to value. (The valuation has been done in April by a reputable valuator Ober Haus). The assets include the current hotel and residential apartment in capital city Vilnius. The liquidity on apartment is high, though the liquidity of hotel (which is one hour drive from capital) could be complicated.

  • Investing from € 10,000 - Interest 11.5%
  • Investing from € 25,000 - interest 12% 
  • Investing from € 40,000 - interest 12.5% 

Descripton

Object of the loan

The object of the loan is buildings, premises (residential) and other engineering structures (17 property units in total) and land plots (12 property units in total) located in Molėtai district. sav., Dubingiai eldership, Žalktynė village, Įlankos g. 21; Bay Street 23, Bay Street 25, Bay Street 27, Bay Street. 27A and Moletai,  Dubingiai eldership, Laumikonių village, and I. Šimulionio str. 5-1, I. Šimulionio str. Vilnius.

The existing 33.13 acre site has a newly built 3500m spa complex with 100 rooms for accommodation, pools and water treatment areas, wellness and body care areas, and restaurant and conference facilities. Sandy beaches, outdoor terraces with water entertainment areas will form around the spa complex under construction. There are also tennis courts, beach volleyball courts, mini football courts, as well as two squash courts nearby. The layout of the complex is formed after detailed evaluations, analysis of alternative offers available in the market, therefore it will perfectly meet the needs of even the most demanding clients and will be in demand in the market in order to entice the clients.

GENERAL PROJECT INFORMATION

- Buildings, premises (residential) and other engineering structures (total of 17 property units) and land plots (total of 12 property units) located in Moletai d. sav., Dubingiai eldership, Žalktynė village, 21 Bay gulf; Bay 23, Bay 25, Bay 27, Bay Street. 27A and Moletai d. sav. ,, Dubingiai eldership, Laumikoniai village, and I. Šimulionio street 5-1, I. Šimulionio street 5;

- The total area of ​​the land is 30.6666 hectares;

- The total area of ​​buildings, premises (residential) and other structures is 5001.17 m2;

- Total future space of the SPA complex building - 3500 sq.m (visualizations may change during the project development)

Loan Terms

  • Loan Amount: € 795,000
  • Loan term: 21 months
  • Minimum loan term: 6 months
  • Collateral value: € 2,697,000
  • LTV (Loan-to-value ratio): 29%
  • Project risk: A (low)
  • Loan Protection: first line mortgage

Interest: 

  • Investing from 100 € - interest 11%
  • Investing from € 10,000 - Interest 11.5%
  • Investing from € 25,000 - interest 12% 
  • Investing from € 40,000 - interest 12.5% 

Security Information

The value of the existing real estate (buildings, premises and other engineering structures totaling 17 properties and land lots totaling 12 properties) is 2 697 000 €.

  • Address of pledged property: Molėtai d. sav., Dubingiai eldership, Žalktynė village, 21 Bay gulf; Bay 23, Bay 25, Bay 27, Bay Street. 27A and Moletai d. self, Dubingiai eldership, Laumikoniai village, and I. Šimulionio str. 5-1, I. Šimulionio str., Vilnius
  • Valuable assets: buildings and other engineering structures totaling 16 assets. and land plots in total 12 property units
  • Property type: agricultural land, commercial land, living quarters, residential buildings, other engineering structures;
  • Collateral value: € 2,697,000
  • Documentation: Property Valuations
  • Reporting Dates: April 23rd. April 30, 2019 and. 2019;
  • Appraiser: UAB Ober haus Property Valuation Agency
  • Mortgage: A first line mortgage

    Finance

    About the Loan

    The funding will require an amount of € 795,000 to finance the construction work of the newly launched spa center and the refinancing of the existing loan.

    Loan collateral

    First-line mortgages on existing real estate - Mortgage.

    The value of the property is € 2,697,000. Full property valuation reports are uploaded in the Documents section.

    The loan will be repaid from the company's operating income, sale of assets, lease or refinancing the loan.

    Investment risk: A (low)

    LTV: 29%

    Collateral: The value of the collateral is € 2,697,000. Buildings, premises (residential) and other engineering structures total 17 property units. and land plots in total 12 property units.

    Interest:

    • Investing from 100 € - interest 11%
    • Investing from € 10,000 - Interest 11.5%
    • Investing from € 25,000 - 12% interest
    • Investing from € 40,000 - 12,5% interest

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

    Loan Period

    Loan term: 21 months (with option to repay earlier but not earlier than 6 months).

    If the Borrower repays the Loan Amount or part thereof less than 6 months after the due date of 21 months, the Borrower shall pay interest to the Lender for a period of 6 months. After a period of 6 months, the Borrower may repay the Loan at no additional charge.

    Company loan repayment period

    Start of project: 2019 11 30

    Expected project completion: 2020 08 10 - 2020 10 10

     

Project originated by:

Documentation

11%
Annual yield
29%
LTV
Term: 21 months
Mortgage rank:
First
Interest payment schedule:
Monthly