|Criteria||From a+ to d||Project rating|
Macro Location Analysis
Purchase Price/Land Price
Loan To value
Purpose of the loan
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
The borrower is Vogelaars Onroerend Goed B.V. (VOG), which was founded in 2002. The shareholders of VOG are G.W.C.N. Vogelaars (90%) and his partner / wife (10%). The loan will be used to purchase a 3,340 m2 plot of land near the center of Roermond where 13 homes will be developed. The townhall has already confirmed their cooperation.
The homes will be built by a proven concept in accordance with the preference of the municipality of Roermond. The houses have the following benefits:
VOG is looking to raise € 800,000 which will cover the purchase of the land, start-up costs for the development and financing of interest and management fees for the first 12 months. The required amount for interest and management fees will be deposited in an escrow account.
The term for the loan is a maximum of 18 months with an option of early repayment. The interest payment is 8% on an annual basis and will be paid monthly. The capital repayment will be on or before the final interest payment.
To secure the loan the 1st right of mortgage will be registered on the land and additional collateral securities, which is qualified as material, will be provided for a total of € 1,175,000. The risks are considered limited.
Gebroeklaan 52 Roermond 6042 GR Netherlands
Interest per annum
Loan To Value (LTV)
Total Loan Cover (TLC)
|Interest & costs 12 months||€70,000.00|
Once the loan is fully subscribed, the invested amount minus costs will be transferred to the escrow account of the notary for the purpose of purchasing the land. Once the first mortgage right has been established € 70,000 will be deposited into an escrow account to cover interest payments and management fees during the 12-month term and a potential early repayment of the loan. The remaining amount will be made available to the fundraiser to cover preparation and licensing fees.
Creditsafe has rated VOG with a credit score of B, meaning a “Very low chance of a financial calamity” and the company has a net value of more than € 675,000. In 2016 the profit was more than 1 million, The years afterward have given losses, but in 2021 again a big profit will be made of approximately € 800.000 due to the settlement of projects delayed as a result of COVID-19. This is nothing to worry about because it's normal in the real estate world that it takes years before a project gives profits.
The land is purchased for € 550.000. The current market value of the land is valued at € 600,000 with an actual foreclosure value rounded down to € 500,000. As security, a 1st mortgage is provided on the land. based on the actual foreclosure value, to be increased with execution costs for a total of € 675,000. The market value of the land is valued at € 835.000 after retaining irrevocable permission to build the 13 houses.
In addition, a business guarantee of € 500,000 is provided by Vogelaars en Goesten Holding B.V. (VGH) of which G.W.C.N. Vogelaars (who is also the owner of the lender VOG) is the sole director and the 100% shareholder. Creditsafe rates VGH with an A credit score, which means “Lowest chance of a financial calamity” and the company has a net value of € 2,900,000. The guarantee is qualified as material based on annual figures and forecasts.
This results in a total collateral value of € 1,175,000 or € 1,000,000 based on execution value, which equates to an LTV of 72.7% and a TLC of 125%.
The main risk is that the building permit is still to be issued. The townhall has confirmed its full cooperation to obtain the building permit. The homes can be sold as soon as the permit has been granted. The time period to obtain the building permit is normally 8 months. We have assumed 12 months to be on the safe side and we have an additional 6 months to sell the units for a total loan term of 18 months.
The development budget is fixed and offers the necessary reserves to cope with setbacks. The valuation report does not contain any indications that the reserves are insufficient.
Below mortgage will be established on behalf of investors to secure this loan.
|TYPE OF PROPERTY||MORTGAGE RANK||AMOUNT||LC|
|TYPE OF SECURITY||QUALIFICATION||MODE||AMOUNT||SECURITY GRANTOR|
|Business Guarantee||Material||Constant||€500,000.00||Vogelaars en Goesten Holding B.V. (VGH) - 20081769|
|The building permit required has not been issued yet.||Medium||The townhall has confirmed its full cooperation to obtain the building permit. The projected cash flow is sufficient to repay the loan in the event that the building permit would be delayed or denied.|
|Sales agreements have not been concluded yet with a (future) buyers||Low||The homes can be sold as soon as the permit has been granted. Given the big shortage of homes, 18 months should be more than enough to sell the properties.|
|Unforeseen costs for the development of the land||Low||The development budget is fixed and offers the necessary reserves to cope with setbacks. The valuation report does not contain any indications that the reserves are insufficient.|
Oetelaarsestraat 71 5292 NK Gemonde Netherlands
Vogelaars Onroerend Goed BV
Message from fundraiser
After his studies, Ger worked at the ABN AMRO. He then co-founded the SNS Bank Brabant with a management team of 10 people. In 1997 Ger founded an independent financial consultancy firm, which had at its peak 10 advisors and 25 back office full-time employees.
In 2002 the financial consultancy was sold and Ger founded Vogelaars Onroerend Goed B.V. (VOG) to make investments in the real estate market, specifically in Germany. With VOG he operated and eventually sold more than 200 homes in 2 German limited companies.
Currently, VOG's activities consist of assisting in the sale of several industrial buildings, owned by V.O.C. GmbH, which is 100% owned by VOG. A provisional permit for the construction of 120 apartments has been obtained on the site where the industrial buildings are located. A buyer for the project has already been found and the purchase agreement is currently being drawn up. This sale would provide a positive cashflow of approximately € 1,200,000.
|30.01.2021||Paid||No||29 January 2021, 00:00|
|28.02.2021||Paid||No||01 March 2021, 00:00|