Complex of land plots in Kakumäe

 Development loan
Project listed: 16.07.2020
Kakumae,
Estonia
49 011.00 €
Raised Of 125 000.00 €
12%
Annual yield
50%
LTV
Term: 18 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Invest:
Interest payments
30.08.2020
Pending

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Risk rating

CriteriaFrom -2 to 2
Property type0
LTV1
Loan Structure0
Pre-sales-1
Experience0
License2
Macro-location2
Micro-location0
Purpose of the loan1
Investment length1
EBITDA Margin2
EvoEstate Risk rating is of an informative nature only and can not be considered investment advice.
Project rating
B
Originator rating
C+

Descripton

Object overview

  • Category - Development loan
  • Total yield - 12%
  • Payment frequency - Monthly interest payments 
  • Collateral - 1st rank mortgage in amount of 250 000 EUR
  • Duration - 18 months 
  • Country - Estonia
  • LTV - 50%
     

The investment will be secured with 1st rank joint mortgage on two land plots owned by the developer: Silgu 36 and Silgu 36a, Tallinn - expert opinion from 2018 values them at 281 000 EUR as they are and with the approved detail planning at 494 000 EUR.
 

Property
The investment opportunity is a complex of land plots located in the high-end residential area in Tallinn, next to a popular beach - Kakumäe. The purpose of the funding is to purchase the third land plot in the location where the developer already owns two land plots, with an address: Silgu 36 and Silgu 36a.

All three land plots stand next to each other:
Silgu 36, 100% residential land - total area of 4136m2
Silgu 36a, 100% residential land - total area of 568m2
Otsatalu 16, 100% unassigned land - total area of 2708m2

After purchasing the third land plot, the developer will create detail plannings for all of them, together with communication and infrastructure. The land plots will be divided and prepared for construction of four private residential buildings. The land plot with an address Otsatalu 16 is strategically important, as it will provide driveway access to two of the planned premises. The other two premises will have access from Silgu street.
 

Area
The Kakumäe area is a highly demanded and reputable living environment, which is characterized by the proximity of the beach and developed infrastructure. The area is well known for its luxurious villa type houses and big private gardens. This high-end suburban is considered as one of the wealthiest areas in Estonia. Our complex is located on a quiet side street away from noisy highways and densely populated areas. It is a quiet and green area in nature, but at the same time, the amenities of the city are not too far away. Tallinn city center is a 15-minute drive away.

Investment case

Monthly interest payments – repayment of principal amount by end of the investment period. 

The property for investment is a complex of land plots, which the developer will separate and prepare for construction of four private houses. Currently the developer owns two land plots in that location, with an address Silgu 36 and Silgu 36a. 

The third land plot with an address Otsatalu 16 stands next to them and will be purchased by the developer, as it will add value to the two existing ones by creating an access to the land plots from the opposite side of Silgu street. The developer will then be able to divide the land plots into four separate premises, that will all have separate entrances from the public road. 

The work with the detail planning has already started and the developer has an agreement to purchase the Otsatalu 16 land plot. The estimated period for the detail planning is 12 months, but the sale process will start prior to that. Once the detail planning is approved, the estimated value of each plot will be above 160,000 EUR. The developer already has a reservation on one of the planned plot. Sale of one plot will be enough to pay back the principal amount. 
 

About developer
The developer is Silgu KVB OÜ - a company that is related with Tina KVB OÜ, who is one of our founders and main owner. Tina KVB has been working with high profile real estate projects in Baltics since 2005. In the past 15 years they have successfully carried out many similar type of projects, where they complete all the legal works to prepare the plot for construction and sell it with a great profit to a local developer. 

Project originated by:
Reinvest24 charges 2% investment placement fee on your investment.

Documentation

49 011.00 €
Raised Of 125 000.00 €
12%
Annual yield
50%
LTV
Term: 18 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Invest:
Interest payments
30.08.2020
Pending
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