Project update

Update from the originator: 

The originator would like to inform you that the project owner is currently implementing refurbishment works to increase the property's value and reduce heating costs for tenants. The use of the premises is also being converted into “creative workshops” (which are most commonly used for lofts), which will further increase the property's value.

During the refurbishment works, a part of the premises will not be rented out.

The updated terms increase the total loan amount to EUR 240,000, and investors will be paid a fixed annual interest of 7.5% – 7.7% regardless of occupancy. The first indexation of the fixed interest rates for this project will take place on 15th January 2024.

Please note that the Loan-to-Value (LTV) ratio decreased to 67%.

Update from the originator:

The originator would like to inform you that the originator has transferred the investors the share of the profit, which is distributed on the sale of the Project Assets. Which for a number of investors has increased the amount that would be distributed in a profit payout. For a detailed explanation please read below.

Previously, the investor’s profit share was set based on the investment amount:

Invested up to EUR 15,000 – 45%;

Invested from EUR 15,000 EUR (inclusive) up to EUR 30,000 – 50%;

Invested from EUR 30,000 EUR (inclusive) – 55%.

After the originator has transferred its share of the profit, all investors’ share of the profit is equal to 55%. However, based on the amount invested, an accounting fee may be applied:

Invested up to EUR 15,000 – 0.18;

Invested from EUR 15,000 (inclusive) up to EUR 30,000 – 0.09;

Invested from EUR 30,000 (inclusive) – 0 (investment terms have not changed).

In the case of this project, for a certain group of investors in case of profit payout, the net amount grows. Below you can find an example and comparison of how a payout of 100 EUR changes based on the previous and updated structure:

Previous structure:

Invested up to EUR 15,000 – payable profit 45 EUR = 45% * EUR 100;

Invested from EUR 15,000 (inclusive) up to EUR 30,000 – payable profit 50 EUR = 50% * EUR 100;

Invested from EUR 30,000 (inclusive) payable profit 55 EUR = 55% * EUR 100 (investment terms have not changed).

From now:

Invested up to EUR 15,000 – payable profit 45.1 EUR = 55% * EUR 100 * (1-0.18). The amount grows. 

Invested from EUR 15,000 (inclusive) up to EUR 30,000 – payable profit 50.05 EUR = 55% * EUR 100 * (1-0.09). The amount grows. 

Invested from EUR 30,000 (inclusive) payable profit 55 EUR = 55% * EUR 100 * (1-0.00). Investment terms have not changed. 

The originator is introducing this fee in order to optimize and standardize the methodology of internal accounting procedures and resources, due to the reason the payable amounts and percentages range between projects. This is an operationally intensive process. Additionally, for every payment the originator facilitates, it pays service fees to payment services providers, and in order to ensure cash flow-positive operations, a decision was taken to introduce a percentage-based tariff on profit rather than gross project profit.

The originator would like to clarify that investors’ interest from a share of the profit to be distributed on the sale of the assets will be paid out net, which means all applicable fees will be deducted before payment.

Update from the originator:

The originator would like to inform you that the monthly interest from the project owner was received on time. However, due to issues the originator is facing on the payment processor’s side the originator can not process the payments correctly. Interest payment for this project is received and the funds are secured in an escrow account. The originator is aiming to distribute these payments as soon as possible in the upcoming business days.

Update from the originator: The project – Studio Apartments rental contracts were under review. As a result, the rent increased from 1350.16 EUR to 1592.25 EUR per month. This means, that the annual current return to investors rises from 7.36% to 8.69%.

Update from the originator:

The originator is pleased to inform you that a new rent contract has been signed for the Studio Apartments project. The contract is valid for one year. The project's occupancy is again at 100% and rental income (interest) for investors hasn't changed: +7.36% per annum.

Update from the originator:

One of the six tenants did not extend the lease. The project owner will try to find a new tenant to keep the project occupancy at 100%. Currently, the properties are generating 1.250 EUR per month of rental income. The net monthly rental yield is 1.125 EUR that is distributed to the investors.

Investors will receive the full amount of the next payment. 

Update from the originator:

The originator would like to inform you, that the mortgage on the Studio Apartments assets has been successfully placed (document is attached in the documents section) by the project owner and that the investment will distribute interest for the previous month on April 15th. The interest for investments carried out in the month of April will be distributed in May, until the 15th day.