InRento 2-micro offices

 Buy to Let
Project listed: 01.12.2020
Vilnius,
Lithuania
7.55%
Annual yield
Term: 18-84 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Interest payments
07.01.2021
Paid
10.02.2021
Pending

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December 29, 2020

Update from the originator:

The originator would like to inform you, that the mortgage on the asset has been successfully placed by the project owner and your investment is generating a return. The project owner will be distributing interest every month's 10th day.

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Risk rating

CriteriaRating
Macro Location AnalysisA+
Purchase PriceA+
TenantA
Development's licenceA+
Tenant's solvencyB
Borrower's experienceA+
OccupancyA+
Last renovationC+
ElevatorC+
ParkingA+
Rental InsuranceA+
EvoEstate Risk rating is of an informative nature only and can not be considered investment advice.
Project rating
A
Originator rating
A

EvoEstate description

We are excited to introduce the first buy to let InRento project from the city center of Vilnius, Lithuania. InRento is the first European buy to let originator that is regulated by the Bank of Lithuania and investments are secured with mortgages. InRento is our partner platform and has the same shareholders as EvoEstate (Gustas Germanavičius and Audrius Višniauskas).

We believe that this is a really attractive project due to its central location in the capital of Lithuania, Vilnius, and the already existing tenants that are paying on time. The annual interest rate for the current contracts for this project is 7.55% or a net of 443.20 EUR which is above the medium interest rates that you can find for similar projects. On top of this, investors have a guarantee in form of a first-charge mortgage.

Descripton

  • Project term: 18-84 months
  • Yield: 7.55%

InRento is proud to introduce the first buy to let investment opportunity by a regulated platform in Continental Europe. The investment case is comprised of 2 Rental properties are located in the central area of the city in the address of A. Goštauto g. 8, Vilnius.

Currently, both of the properties are rented out and are generating a total of 554 EUR per month of rental income. The current absolute yield is 554 EUR per month, which results in a 9.44% gross rental yield.

The net rental yield is 443.20 EUR for the distribution to the investors, or in a percentage value equal to 7.55% per annum NET with the given situation of the tenancy. 


Reasons to invest in 2-micro offices in Vilnius:

  • The investment case consists of 2 properties and both are rented out.
  • The investment is generating a 7.55% (9.44% gross) annual yield with the current situation of tenants.
  • The assets are located in the central area of Lithuania’s capital- Vilnius.
  • The borrower has 15 years of experience in real estate.
     

Tenants

Office #223 (which consists of 13,76 square meters area) is rented out to a company that is working in the logistics industry. The tenant is paying 260 EUR per month for rent and the outstanding rental contract is valid until 2021 09 30.

#224 (which consists of 17,94 square meters) is rented out to a company working on Cars parts imports. The tenant is paying 294 EUR per month for rent and the outstanding rental contract is valid until 2021 02 17.

Financial terms of the investment:

  • Minimum term: 18 months
  • Maximum term: 84 months
  • Rental income share: 80% investors / 20% borrower
  • Fixed-interest rate: 1%
  • Security: 1st charge Mortgage

InRento investors are granting a loan to the borrower for the acquisition of the rental properties. The loan is secured with a first-charge mortgage which in time of borrower’s inability to fulfill financial obligations would be used to repossess the asset. 

The revenue-share between the borrower and the investors is set at 80/20, meaning that the borrower is obliged to distribute 80% of the income to the investors. The current absolute yield is 554 EUR per month, which results in 443.20 EUR  distribution to the investors, or a percentage value equal to 7.55% per annum with the given situation of the tenancy. 

  • Increased interest rate: 4%
  • Capital growth sharing: 70/20/10


What would happen if the tenants would leave the property?


In an unlikely scenario of both of the tenants canceling their tenancy, the borrower would be paying a 1% annual interest rate until the new tenants would be found. If the borrower would not rent out the assets within 3 months, the fixed-interest rate would be increased to 4% per annum.


What will happen when the property will be sold?


When the property will be sold and it will be sold more expensive than it was acquired. The capital growth will be distributed in the following structure: 70% investors / 20% borrower / 10% InRento. 


The project owner:

The borrower- UAB Real Assets, is a newly established legal entity to serve as a special purpose vehicle for a purpose of increased security for the investment. The manager of this company has been working in the Real Estate industry for the last 15 years. He has successfully commercialized residential, commercial and hospitality projects internationally and counts numerous successful sales of companies operating in the real estate industry.


Key investment risks:

Risk of falling prices: the price of the property might fall due to the increase in supply or decrease in demand in the area or other economic factors.

Liquidity risk: The borrower might be unable to find a buyer to sell the property.

Tenant risk: Although the assets currently are fully rented out, there is a risk that the asset can lose the tenant and it can take time to find the new tenant.

Project originated by:

Documentation

7.55%
Annual yield
Term: 18-84 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Interest payments
07.01.2021
Paid
10.02.2021
Pending
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