Project update

Update from the originator: 

During the past year, the originator has performed the renovation works for this rental unit and to date, they have been successfully finished. However, the originator faced some challenges, too. In June, they lost the tenant, and therefore there were no rental payments since then. The originator is glad to inform you that now, they have signed the rental agreement with the new tenant and starting from now, the rental payments will be paid on time as previously.

Apart from that, the selling process of this project is ongoing and once the originator has achieved progress, they will inform us by sending another update.

Update from the originator:

• First rental property located in Riga – office space with a valid rental contract with a local IT company.
• This property got funded at the beginning of October 2020, first rental payment was made in November.
• So far there have not been any issues with the tenant and the rental payments.
• The property generates 8% net rental income and will be exited by the end of 36 month period with a +10% premium.
• Reinvest24 will take the operating fee from the profits made through the exit.

Reinvest has changed the funding target from 167,000 EUR to 164,000 EUR, due to the reason that the actual acquisition fees were reduced by Reinvest24, because intially they have calculated acquisition fees for residential, while in Latvia they were able to optimise it.

Update from the developer:

1. Profitable tenant
The office space is rented out to a local IT company which has been extended the rental contracts year after year for the past 3 years. Despite the COVID-19 pandemic, tenants continue to use the office space and are not thinking of changing it in the nearest future. Besides that, their profit for the 2019 financial year was 690 000 EUR.

2. Renting price lower than the market average
The office space comes at 770 EUR per m2, which is below the Riga property market and leaves room for capital growth. At that price level, the rental contract will yield our investors an 8% net income, which will be paid out monthly. 

3. First rental payout in November
Monthly rental income starts for our investors when the property gets fully funded. In November investors can already expect the first rental payout for the month of October.