Bauskas development loan - 5. stage

 Development loan
Project listed: 29.10.2020
Riga,
Latvia
45 623.00 €
Raised Of 100 000.00 €
13%
Annual yield
67%
LTV
Term: 12 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Invest:
Interest payments
25.12.2020
Pending

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Risk rating

CriteriaRating
Macro Location AnalysisA+
Financial CostD
Loan To valueA-
Purpose of the loanB+
Development's licenceA+
Borrower's experienceA+
PresalesD-
GuaranteesA+
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

Insider updates on Bauskas development project

Category - Development loan
Total yield - 13%
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. 

On a land plot with a total area of ​​2160 m2 at Bauskas 57, Riga, a 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

The area
Riga is the most important economic, industrial as well as cultural center 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 centers, several state institutions and car dealerships. The squares full of greenery, fresh riverside air or shopping center “Riga Plaza” in just a couple of minutes walk, all together make 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 neighborhood

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 center in under 10 minutes, regardless of the time of day, which makes this location very favorable and attractive for the living.

Investment case

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 860 000 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 the Baltic regions, such as Latio, Arco real estate and Ober-haus, a balanced price increase of 2.5 - 4 % in the 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 neighborhood 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 neighborhood property market proves to be on a stable, balanced and positive development path. 

About developer
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. 

The 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

 

Project originated by:
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Documentation

45 623.00 €
Raised Of 100 000.00 €
13%
Annual yield
67%
LTV
Term: 12 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Invest:
Interest payments
25.12.2020
Pending
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