A prospective investment opportunity into a residential property in the center of Chisinau, Moldova, secured by the 1st rank mortgage with construction works conducted by an experienced international developer.
The city of Chisinau is located within the elevated woodland area of Codru. Its land is full of black soil, which is ideal for agricultural development. Just outside of Chișinău is Milestii Mici Village, a winemaking plant that boasts cellars with the largest collection of wine in the world with more than 1.5 million bottles!
You may already be familiar with the name METROPOLIS CITY, as this is the district's name where one of our currently outstanding projects is located - Metropolis 4D. Despite the similar name and close proximity, these projects are different from each other. In fact, these properties are two separate blocks located in one district, possessing different collaterals and financial obligations.
The new METROPOLIS district is located in the city's Botany sector. The Botany sector has a very developed infrastructure and is known as the greenest area of the city. METROPOLIS itself is conveniently located only 5 minutes from the airport and 10 minutes from the center of the city. Green parks, a lake, a Botanical garden, educational institutions, shopping center and even a zoo - all are within arm's reach. Also, a business center with various conference rooms is on the building's pipeline, thus allowing business people to hold important meetings literally without leaving their homes. And that makes this part of the city so much attractive for young families and active lifestyle admirers. In addition, the existing interest from potential buyers and sales forecasts confirm the high demand for new projects in the area.
On a land plot with an area of 1,315 m2 (total area of 91,000 m2) at Dacia street 59, Chisinau, real estate development project is prepared with a cadastral number 0100119 section 448.01.001-042, 045-061.
Specification of the building:
Specification of the apartments:
Metropolis 4A block consists of one to three-room apartments. All apartments are designed in a modern style with convenient and practical layouts, using only eco-friendly and premium class materials. The building is equipped with a ventilated facade and waterproofing materials that are made of mineral wool. All this easily allows the apartments to stay warm in winter and cool in summer. Also, mineral wool perfectly copes with sound insulation, suppressing any noise. The underground floor of the building is reserved for the parking area.
As per security, future inhabitants may be sure that this is something that was taken into account very seriously, as the building is equipped with a video surveillance system and is under round-the-clock security.
Monthly interest payments – repayment of principal amount by end of the investment period. The contract is in EUR currency, therefore currency risk is eliminated.
The team of developers has already started the work on this project and has just finished the first cycle of groundwork. All the permits have been obtained and the Construction Board of the city of Chisinau has approved the project. The total budget investment amount into the project to date is 200’000 EUR. The total amount of funding for the project is 1M EUR (excluding the land price) so several stages of funding are planned for the platform.
It is important to mention that loan-to-value (LTV) for this project will be lower or equal to 50% at any stage of the duration of this project. It means that collateral coverage for the total amount issued to this project will be at least 200% at any time;
It is expected that the building will be ready for commissioning by November 2021.
The loan will be repaid from the amount of the sale of the apartment or by refinancing it in a financial institution. The demand for new residential properties in the city of Chisinau is growing. And as of today, 12 apartments out of 42 from this project are already sold. The developer reserves the opportunity to raise additional capital, as the cost of collateral increases.
Real Estate Market in Moldova
The real estate market in Chisinau accounts for about 70% of the entire Moldovan market. The beginning of the year 2020 was significant for the real estate market in the capital city. More apartments were sold in the first quarter than during 2019. This is due to an increase in the number of people who decide to move to the capital city or its suburbs.
According to the forecasts of the real estate agency, the demand for new housing will continue to increase this year, and the secondary market is expected to decline by 8-10%. The primary market will be characterized by a steady increase in prices. This is due to a reduction in the number of authorizations for the construction of new homes, as well as improved mortgage lending conditions.
For example, if five years ago banks provided loans at an interest rate of 12-14% per annum, at the end of 2019, the loan rate fell to 6-9%. On average, prices for apartments in new buildings are expected to grow by 8-10%, while in complexes commissioned, the price growth will be more pronounced – by 10-15%.
Housing prices in Chisinau and its neighboring cities range from 400 to 1300 euros / sq. m. The offer varies, and customers can choose from ready-to-use residential complexes or from a variety of projects that are still under construction.
Taking into account all the above, the real estate market in Moldova, especially in the city of Chisinau and its surroundings, is on a stable, balanced and favorable development path, which has a positive impact on the developer and investors.
The developer is SRL Valen Construct, which is 87% owned by Kirsan Swiss GmbH.
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 and Moldova.
As of today, KIRSAN built and commissioned 25 residential complexes with 4595 ready-to-use apartments. The total built-up area was 225,460 m2. Each project was built with a special treat, passion and scrupulous attention to even the smallest details.
KIRSAN uses the latest construction technologies. This allows to build reliable buildings with high security in difficult soils, as well as provide a high degree of seismic stability. The company has a unique technical Park equipped with the most modern equipment of famous European manufacturers, such as Casagrande and Bauer. KIRSAN is the only company in Moldova that uses the latest generation of drilling equipment for jet cementation of soils.
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.metropolis.md
|10.01.2021||Paid||No||08 January 2021, 00:00|
|10.02.2021||Paid||No||03 February 2021, 00:00|