All the information about withdrawals, accounts, Secondary Market and other topics can be found in this FAQ blog post. In case you still have questions, you can contact us at info@evoestate.com

July 06, 2021

Update from the originator:

The deal settlement process is in the final phase. The sponsor has the last notary appointment to sign and notarially approve for Land book register final documents to settle the deal. This settlement has taken longer than the usual deal process due to the structure of this deal - refinancing in several tranches, collateral has to be freed from previous encumbrances set by Bulkestate and previous financiers collateral structure (several apartments serve as collateral for one loan). We expect that the Land book register will register final changes to settle the deal in 1-2 weeks' time.


April 09, 2021

Update from the originator:

As you know, a forced auction process has been initiated to recover the funds for all Aleksandra Apartments loans. The auction is set to end on April 18, 2021, yet no bids have been placed so far. Upon consulting with some field experts, the originator has concluded that the funds gained from the auction would result in approximately 18% losses of the principal loan amount, not to mention the interest, which is unfortunate, to say the least.

While this legal process was initiated to finalize the deals, the originator continued to look for an option that might provide a different and better outcome. As previously stated, another European crowdfunding platform showed interest in refinancing the loans and now the originator is very glad to inform you that this platform, which is Crowdestate, has agreed to carry out refinancing the loans. The refinancing will provide an option for the borrower to return the debt to Bulkestate investors and, in the very best case scenario, will cover the principal amount of investments and a part of the accrued interest as well. The refinancing process is expected to be concluded in 60 days as the paperwork has been already signed and Crowdestate is preparing for putting the objects up for funding.

Needless to say, the originator is very satisfied with this scenario as the forced auction process would recover a considerably smaller amount of funds in a much longer timescale while refinancing allows recovering a larger amount of funds and the process will be much quicker too. While now it is clear that the principal amount of investments will be recovered completely, the accrued interest payment most likely will be smaller than expected and will be applied only for the time period of an initial official term for each loan. It means that no late fees will be paid out for the time that the loan was delayed. Unfortunately, the investors will lose part of the interest payment too, yet, the originator must remind you that recovering even a small part of the interest is quite unexpected luck in this case and the originator has put his best efforts in to reach this outcome. In these times of pandemic, it is also quite the best settlement the originator could have hoped for.

Crowdestate plans to start crowdfunding loans at the beginning of the next week. The first loan that will be put up for funding is "Aleksandra Apartments - Apt.9", while the rest will follow. The originator has contributed all the necessary assistance from their side to ensure the deal between the borrower and Crowdestate and must note that the cooperation among both platforms has turned out to be very smooth and fruitful.

You might wonder how beneficial refinancing could be for Crowdestate if all operations with properties seem to be slow-paced and disadvantageous. The answer lies in their approach as an additional real estate mortgage will be registered on behalf of Crowdestate to provide extra security. The additional property will considerably decrease the LTV and turn the deal much more beneficial and also more secure for next investors.

The originator is very satisfied with their dedication to putting investors' interests as their top priority which has resulted in, hopefully, a successful recovery of debt. the originator's team effort, particularly the legal support, has once more proved to be very effective in finding the way to avoid and decrease any expected losses to the minimum.

Moreover, the originator is very grateful to investors who have been very patient along the process and have been open to various scenarios and outcomes while assuring that their trust is with the originator despite the difficulties and complications. 

Refinancing of the loans also means that the auction process has to be ceased. Bulkestate will officially request to pause the auctions as the borrower has to initiate registering of properties on behalf of Crowdestate as soon as the crowdfunding is completed. If the refinancing will fail, the auction process will be resumed accordingly.

The originator will inform all investors when the repayment transfers will take place. Once more, the originator thanks you for the patience and is hopeful that the case will be resolved soon enough.


March 23, 2021

Update from the originator:

The originator has received an official letter from the sworn bailiff that the first auction of all mortgaged real estate has been scheduled for March 19, 2021. The closing date for the auction is April 19, 2021.

The originator will keep you updated on any details that will become available during the process.


February 03, 2021

Update from the originator:

The originator is glad to inform you all that the originator has received an enforcement act from the sworn notary as planned. The act has been submitted to the sworn bailiff already for further enforcement.

An update will be posted as soon as more details on the timeline are available.


January 15, 2021

Update from the developer:

After the holidays, the developer contacted the notary and today have received confirmation for an appointment to receive the enforcement act on January 20, 2021.

There are still ongoing restrictions in Latvia due to pandemic, thus the notary work process is still limited. The originator will keep you updated on the next steps regarding the case.


November 04, 2020

Update from the originator:


The originator regrets to inform you that the originator has received a negative decision from the borrower’s bank regarding the refinancing of Aleksandra Apartments loans. As the borrower has failed to commit to his proposed repayment plan, the originator has decided to proceed with the legal procedure of forced auction.

Still, the borrower asks to prolong the period for repaying the loans and is looking for a solution. However, the originator is not waiting anymore and the originator is taking the next steps to recover the loan amount in accordance with the procedure prescribed by law.

The originator will apply to the notary for an enforcement order and, upon receipt of this document from the notary, the originator will submit it to a sworn bailiff for enforcement, asking for recovery of all immovable and movable property belonging to the debtor. The bailiff will seize all the property belonging to the debtor, including the real estate, and will commit a forced auction of the real estate properties.

As soon as the notary is informed, the originator will have a more clear timeline for the recovery of the loans.

It's quite difficult to determine the time-frame of the whole process, yet it might take approximately 3 -6 months. Surely, the current global situation with pandemic must be taken into consideration and see if it will have any effect on the speed of enforcing the law.

According to law, all costs of the debt recovery process is carried out at the expense of the debtor, thus, increasing the amount of the debt. In this case, the debt collector is the originator, representing the investors.


October 08, 2020

Update from the originator:

At the end of August, the originator informed you that the borrower has proposed a repayment plan that would allow him to repay the loans, yet with a delay. At that moment, due to COVID-19, the originator was already following the law that stipulated that no legal action can be initiated until the beginning of September. As the borrower had a realistic proposal to carry out the repayments in a way that would allow our investors to receive the funds faster than through the enforced legal process, the originator agreed to extend the repayment term for another month, while the originator informed you all about it as well.

During September, the borrower has worked on seeking options to repay the loans to investors by refinancing the loan amount with a bank. This week the originator was informed that a Latvian bank is interested to refinance the loan in full amount. The originator is participating in communication with this bank.

Currently, the originator believes that the refinancing option is more beneficial for the investors as it is likely to yield a better and faster return of funds compared to foreclosure and forced sale of collateral. Therefore, the originator is waiting while the bank is finalizing its internal loan approval process. The originator expects that this may take up to three weeks.

If this process will not end in a binding loan offer from the bank, the originator will commence the foreclosure and sales process of the collateral.
 


August 26, 2020

Update regarding the current situation

First of all, Bulkestate is already preparing for the legal process as the borrower has failed to commit to his financial obligations to Bulkestate. All the preparations, including paperwork and notifying the notary and the borrower, have been already done. While it might seem that Bulkestate is stalling, Bulkestate is actually considering if the legal process would be the best option for the investors at the moment. As there are potential buyers for the properties, Bulkestate is fully aware that such encumbrance as notary's decision to initiate a legal process might easily sink a possible purchase deal. Bulkestate is communicating with the borrower SIA “KK Invest” on a daily basis, urging him to look for solutions and discussing possible options and scenarios. Currently, the borrower has proposed a plan to sell the properties he owns in order to return funds to the investors, which, in Bulkestate's opinion, would be the best of the solutions as it ensures the fastest way to recover the funds as well as it safely returns the investments, accrued interests and penalty fees in full amount. While sales of properties to the third party would provide all the necessary funds, the legal approach with a forced auction would impose a certain sales procedure, which would significantly narrow the range of buyers and reduce revenue, not to mention the length of the process.

Currently, the borrower is in the middle of the sales process, informing Bulkestate about every interested party. Mostly interested are foreign buyers, which provides additional inconveniences and slightly prolongs the process due to geographical limitations and additional verification from credit institutions. There are potential buyers from USA, Russia, Cyprus and Turkmenistan that have expressed interest in the Apartment 15 and the Apartment 16 (the collateral for Aleksandra I and Aleksandra II loans). The local banks are in the process of carrying out the AML procedures for them as well as coordinating the escrow accounts, yet this might take till the end of September.

Furthermore, the family members of Mr Krištopans (the owner of the borrower company SIA “KK Invest”) are in the process to receive funding from credit institutions to carry out a purchase deal for the Apartment 9 (collateral for “Aleksandra Apt.9” loan) in the building, providing funds for the repayment of the loan. Additionally, there is another buyer from Latvia and more from Uzbekistan and Turkmenistan, who are interested in purchasing the property. This deal might also take till the end of September in terms of coordinating the funding and signing the agreement. For that matter, we believe that it would be in the best interests of the investors to wait slightly longer and see if the sales process will be concluded successfully. The borrower has until October to carry out sales of the properties and fulfill his financial commitments to the investors.

A new document has been attached to the documents section regarding this situation.

 


July 28, 2020

Update regarding the current situation of the project:

Dear investors,

Bulkestate is informing you about updates on the current situation with Aleksandra Apartments loans. The borrower has proposed a plan to partly repay and refinance the loans in the upcoming months, thus returning current investments and accrued interest payments along with the penalty fees to investors.
If the borrower successfully carries out the current plan, the loans “Aleksandra Apartments I”, “Aleksandra Apartments II” and “Aleksandra Apartments Apt. 9” will be repaid till the end of August, while “Aleksandra Apartments Commercial premises” will be refinanced afterwards.

Bulkestate assures you that in any case, they will still start the legal process of recovery of the funds as soon as the law regulations allow initiating the process if the borrower has not settled any obligations by that time.

We will keep you updated!


July 06, 2020

The official statement regarding "Aleksandra Apartments I" and its situation: "With this letter, we inform you that there will be a delay in repayments of all loans associated with the Aleksandra Apartments property. Although the borrower has confirmed that he is actively seeking for the solution to repay the loans as soon as possible, we want to let you know that we will initiate the necessary legal procedure and will submit an official warning on June 25, 2020. Nevertheless, we hope that the borrower will find a solution before the legal procedure to overtake the properties is completed in order to repay you the investments and accrued interests in full amount."


June 19, 2020

With this letter, Bulkestate informs you that there will be a delay in repayments of all loans associated with the Aleksandra Apartments property. Although the borrower has confirmed that he is actively seeking for the solution to repay the loans as soon as possible, we want to let you know that we will initiate the necessary legal procedure and will submit an official warning on June 25, 2020. Nevertheless, Bulkestate hope that the borrower will find a solution before the legal procedure to overtake the properties is completed in order to repay you the investments and accrued interests in full amount. As we are communicating with the borrower on a daily basis, he wanted to share his statement on the situation and fulfilment of his financial commitments to Bulkestate:


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