68 000.00 €
Type: Buy to Let
Mortgage rank: First
Interest payment schedule: Monthly
Min. amount of investment - € 100
Update from the originator:
|Criteria||From a+ to d||Project rating|
Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Category: Commercial property
Total yield: 11.5%
Rental yield: 8%
Capital Growth: 3.5%
Payment frequency: Monthly
Collateral: 1st rank mortgage
Duration: 36 months
Monthly rental income after the property gets fully funded. Property comes with an active and well secured rental contract, as well as profitable exit by the end of 36 month period!
The commercial property for investing is a historical 3-floor building with a mansard, which was constructed before WWII. Almost 500 sqm sized building with an address Mainzicas 3 is located in the bohemian part of the city of Riga, Latvia. Our premises are two rooms on the ground floor, with a cadastral number 01000230095-001007, area 55.1 sqm and 01000230095-001010, area 63.2 sqm.
Both rooms are not visible from Brivibas street, which is considered to be the main street of Riga, with heavy traffic. Despite the proximity to the heaviest traffic street of the town, the distractions from pedestrians and traffic along the Maiznicas street is minimal. The windows of our premises are both facing the street and the courtyard which provide natural daylight during the whole day. Besides, they are located advantageously so the noise of the surrounding streets is not heard. And taking into account the same old proximity to the main street, it brings additional value to our investment premises. On top of that, the parking options are very convenient, as it is possible to park roughly 8-10 vehicles along the Maiznicas street free of charge.
The property is located in the part of the center of Riga, at Maiznicas street, in a block consisting of Maiznicas, Miera street, Sarlotes street and Brivibas street. Nearby there are apartment houses, commercial buildings, shops, cafes, schools and other infrastructures. Just 30 meters away is the crosspoint of Miera street (a well-known “hipster” route in the town) and Brivibas street. The best advantage of this location is quietness, hidden but yet proximity to all the hottest locations in the city center.
As per public transportation to the center and the living neighborhoods, it is conveniently provided by a number of buses, trams and trolleybuses along Brivibas street. Also, the Miera street possesses the nearest public transport stops. But if the walks are preferred - then the Old town of Riga and the Central Station will be just 20 minutes away.
Monthly interest payments – repayment of principal amount together with capital growth by end of the investment period.
The investment property is commercial premises with a total area of 118.3 sqm (55.1+63.2), at the city center of Riga, Latvia. It is purchased from the auction at a price of about 520 EUR per sqm which is below the market average. After acquiring this property, we are planning to make a renovation of the premises (expenses are already included in the funding amount) and rent it out at a higher price. The premises come with two sub-tenants. The first, pro bono, is a Retirement Opportunities Center (financed by its patron, Lafiko, a finance company lending to the seniors), which works in the field of improving the quality of senior lives. As per the second, there is a tenant, an initiative group who make art exhibitions and promote the love for the art in the city.
The rental income for our investors will be secured through a prime tenant, with whom we have a 3-year rental contract. The prime tenant will be managing the premises and sublet them to tenants. The prime tenant's plan is to renegotiate the renter terms upwards, as he will refurbish both of the premises and the facade, and will find a commercial use for the yard of the property. The existing terms are believed to be severely lower than the market with enough leeway for growth.
Once the property gets fully funded, the property will be acquired, a first-rank mortgage installed on it and the prime tenant will also perform some renovation works to make it more attractive.
The strategy with this property is to provide stable cash flow for our investors and exit it by the end of the 36 month period. We already have a preliminary agreement for the profitable exit, so 3.5% annual capital growth is secured for the period of investment.
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