Bauskas development loan - 2. stage
Update from the developer:
- The roof works are prepared and waterproofing works are being prepared;
- The staircase from the parking lot to the rooftop exit is completely ready;
- Technical equipment of the elevator and the exit to the rooftop is completely ready;
- The formwork has been delivered;
- The blocks for masonry walls of the first floor has been imported and are ready to be used;
New pictures of the progress have been added.
Category - Development loan
Total yield - 13% (+1% on investments above 5000 EUR)
Payment frequency - Monthly interest payments
Collateral - 1st rank mortgage
Duration - 12 months
Country - Latvia
LTV - 67%
Secured with a first-rank mortgage, an attractive investment opportunity to participate in the five-story development project in Latvia, Riga, conducted by the experienced International developer.
The yield of the property is 13% but the investments above 5,000 EUR will generate additional +1%, in total generating yield of 14% per annum.
On a land plot with a total area of 2160 m2 at Bauskas 57, Riga, real estate development project is prepared with a cadastral number 01000520109 section 4109. The projected apartment building will consist of:
- Total living area - 2240.33 m2
- The number of apartments - 35
- The underground parking - 20
- The above-ground parking - 7
Riga is the most important economic, industrial as well as the cultural centre of the country. Located on both banks of the Daugava River, not far from its confluence to the Gulf of Riga. Bauska Home Residential complex is located in old Ziepniekkalns, Zemgale district, on the street Bauskas 57, which is one of the most dynamically developing areas of the city. The Zemgale suburb of Riga estimates 105 500 inhabitants.
The area has close proximity to schools, kindergartens, public communication hot points, business centres, several state institutions and car dealerships. The squares full of greenery, fresh riverside air or shopping centre “Riga Plaza” in just a couple of minutes walk, all together makes this part of the city a desirable destination for young families. Besides, the existing interest from potential buyers, sales forecasts confirm the high demand for new projects in this neighbourhood
Despite the fact that the appraisers consider the area as Ziepniekkalns, the project is rather located in the Tornakalns District, where the traffic jam is more flexible, making it possible to get to the city centre in under 10 minutes, regardless of the time of day, which makes this location very favourable and attractive for the living.
Monthly interest payments – repayment of principal amount by end of the investment period.
At the moment, everything is prepared for starting construction works, as the city of Riga has approved all the permits. The land plot is equipped with an entrance for large-sized transport. The total investment into this project so far amounted to 570 000 EUR. The apartment building is projected to be ready to live by 2021 October. The loan will be repaid from the sale of the apartments or by refinancing it in a financial institution later. The borrower retains the opportunity to raise additional capital, as the collateral value increases. The total funding to complete the development is 2 000 000 EUR, therefore, it is expected to see more funding stages on the platform.
The real estate market of Latvian capital city and the overall economy is slightly behind Tallinn, but developing rapidly. According to the latest residential market reviews made by major real estate companies in Latvia and Baltic region, such as Latio, Arco real estate and Ober-haus, a balanced price increase of 2.5 - 4 % in Riga residential sector also took place in the year 2019. The total number of apartment transactions in Riga increased by 10% in 10 months of 2019, thus exceeding a total amount of 8000 this year. Riga neighbourhood newly built apartments sqm price range from 1450 to 1850 EUR, while in Riga the average price stands at 2000 – 2400 EUR/sqm. Most demanded apartment size in new buildings is at 70-90 sqm, with a price range from 80 000 EUR – 130 000 EUR.
Considering all mentioned above, Riga and Riga’s neighbourhood property market proves to be on a stable, balanced and positive development path.
The KIRSAN holding has begun its operations in 2010 as a real estate development company. It opened offices and developed numerous successful projects in Spain, Latvia, Switzerland, Germany, Romania, Moldova and Romania.
Company is active in many fields, such as:
- construction of residential and commercial real estate;
- construction of cottages and country houses;
- construction of turnkey real estate;
- turnkey renovation of residential, office and retail real estate;
- construction machinery and equipment;
- logistics and transportation of construction materials;
- interior design and landscape design;
KIRSAN holding is focused on the most complete and effective satisfaction of customers and investors needs through a comprehensive approach to construction without involving third-party financiers, which allows implementing projects of any complexity in a short time.
The total number of employees is more than 1000 people. The quality and reliability of any service provided, starting from construction to commissioning-is confirmed by extensive practical experience.
The official property website - www.kirsan.lv