Loo, Niidu, Ristiku roads, Parnu, 2nd stage

 Development loan
Project listed: 20.11.2020
Niidu,
Estonia
12%
Annual yield
40%
LTV
Term: 18 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Interest payments
25.01.2021
Pending

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Risk rating

CriteriaRating
Macro Location AnalysisC+
Financial CostD
Loan To valueA+
Purpose of the loanC+
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
A-

Descripton

Introduction

Purpose of funding

• Land plots development project for a residential buildings 2nd stage (you can get acquainted with the overview of the developed apartment building and private villas and project in the project photos)

Loan protection

• Pledge of the 26 residential land plots with a first rank joint mortgage.

Project investment return and interest payment

• Start of fundraising on the Nordstreet platform: 2020-11-20

• Investment from 50 €

• Annual investment return of the project from 12% (investment conditions are described in more detail in the Detailed information section)

• Interest on the Loan amount is calculated from the date (inclusive) on which the Loan amount is paid to the Borrower's Paysera account or to such other account (or accounts) as the Borrower notifies the Operator in writing prior to the disbursement of the Loan amount.

• Loan term: 18 months

• Interest is paid monthly.

Nordstreet takes these measures to guarantee a safe investment

• The loan to value ratio of the project will not exceed the LTV ratio provided in the project description, including in cases when the project will be financed in stages.

• If the required amount of funding is not collected before the start of the project, all investments will be returned to the invested persons. Upon application by the Borrower, financing may be considered successful upon completion of a smaller amount, project financing may be divided into several stages and / or the project financing period may be extended. In these cases, Nordstreet informs the funders and publishes the information on the completion of the project with a smaller amount, the division of the project funding into several stages or the extension of the project funding period on its website together with other information about the project.

• By investing in a project, financiers acquire claim rights. Nordstreet may make it possible to transfer these claim rights to other users of the platform in the Secondary Market in accordance with the terms of use.

• The activities of UAB Nordstreet are supervised by the Bank of Lithuania and included in the Public List of Operators of Concentrated Financing Platforms administered by the Bank of Lithuania.

Business loan terms

Object of the loan

The object of the loan is planned to develop an investment project i.e. development project and preparatory works for the land plot and start of construction 2nd stage.

To ensure the need for financing, the Developer pledges LEONARDO GOLF VILLAGE 26 residential land plots, located at Estonia, Pärnu city county.

Loan terms

• Loan amount: 125 000 EUR (2 stage)

• Loan term: 18 months

• Value of the mortgaged property: 757 000 EUR

• LTV (Loan-to-value ratio): 40%

• Project risk: C (higher)

• Loan protection: mortgaging property on a primary mortgage

Interest:

• When investing from 100 EUR - interest 12%

• When investing from  5,000 EUR - interest 12,5%

• When investing from 10 000 EUR - interest 13%

Collateral information:

• Addresses of the pledged property: Loo road 7-9, Niidu road 3-9, Niidu road 11, 13, 16, Ristiku road 3,5,7, Ristiku road 11-16, 18, 20, 22 in Estonia, Pärnu City county.

• Type of real estate: Land plots (residential) with a total area of 35 489m2

• Value of the mortgaged property: 757 000 EUR

• Documentation: Asset Valuation Report.

• Date of preparation of the reports: 24 April 2019 and 23 March 2020

• Evaluator: OÜ Kinnisvarabüroo Uus Maa

• Mortgage: primary mortgage

Borrower

Erel Group Trading OÜ, engaged in real estate contracting, purchasing, sales and development.

The management of company has an experienced who are well acquainted with its work and the specifics of real estate, and has been doing business in the real estate market for more than 20 years. The company's 2019 balance sheet assets amount to more than EUR 5.97 million and total equity amount to more than 2.1 million euros.

Loan protection collateral

Purpose of a business loan

Full financing requires an amount of 125 000 EUR, which will be allocated to a development project for the construction works.

 

Loan collateral

First rank joint mortgage of existing real estate - Mortgage. The loan will be repaid from the sale of the company's development assets.

Investment risk: C (higher)

LTV: 40%

Pledged property: 26 land plots (residential) with the total area of 35 489 m2.

Value of mortgaged property: 757 000 EUR

 

Interest:

• When investing from € 100 - interest 12%

• When investing from € 5,000 - interest 12,5%

• When investing from € 10,000 - interest 13%

 

Loan term

18 months (with the possibility of repayment earlier, but not earlier than after a period of 6 months).

If the Borrower repays the Loan amount or part thereof earlier than 6 months before the due date of 18 months, it undertakes to pay interest to the Lender for a period of 6 months. After a period of 6 months, the Borrower may repay the loan (together with the applicable interest) without any additional fees.

 

Company loan repayment period

Estimated start date of the loan: 2020 12 01

Expected repayment date of the loan: 2021 11 30 - 2022 04 30

Strengths and risks

SWOT analysis of the project beneficiary:

Stenghts:         - First rank joint mortgage on existing 26 real estate plots; 

                          - LTV is less than 50%.

Weaknesses:   - Exclusive real estate project and selling period is longer. 

Opportunities: - The borrower's expected average annual interest rate payable is 12 - 13%. 

Threats:            - Uncertain economic situation. 

Project originated by:

Documentation

12%
Annual yield
40%
LTV
Term: 18 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Interest payments
25.01.2021
Pending
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