Descripton

Introduction

Purpose of funding

Additional financing of a land plot with a building development project.

Loan protection

• Pledge of land and building with a primary mortgage
• Project investment return and interest payment 
• Start of fundraising on the Nordstreet platform: 2021-03-29
• Investment from 100 €.
• Annual investment return of the project from 11% (investment conditions are described in more detail in the Detailed information section)
• Interest on the Loan amount shall be 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 shall notify the Operator in writing prior to the disbursement of the Loan amount.
• Loan term: 8 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 the additional financing of a development land plot with a building with the aim of completing the project under development. (negotiations are currently underway with a potential buyer of part of the building)

To ensure the need for financing, the Developer pledges the real estate under development to a plot of land located at Žilvino St. 7, Palanga, Lithuania, with a total area of ​​0.1818 hectares with an existing building of 238.35 m2;

Loan terms

• Loan amount: EUR 120 000 (2nd stage)

• Loan term: 8 months

• Minimum loan term: none

• Value of mortgaged property: € 478 000

• LTV (Loan-to-value ratio): 62%

• Project risk: B (medium). You can read the project owner's evaluation rules here.

• Loan protection: mortgaging property on a primary mortgage

Interest:

• When investing from 100 EUR - interest 11%

• When investing from 2 500 EUR - interest 11.5%

• When investing from 5 000 EUR - interest 12%

• When investing from 15 000 EUR - interest 12.5%

Collateral information:

• Address of the pledged property: Žilvino str. 7, Palanga

• Property type: a plot of land for low-rise residential purposes

• Value of the mortgaged property: 478 000 EUR

• Documentation: property valuation

• Report preparation date: 26th March  2021

• Appraiser: UAB Nill nill property appraisal agency

Borrower

Project developer - UAB ESSCALA real estate, which specializes in project search, development and sales. The company’s shareholders and executives have developed successful real estate projects in the coastal region, and the company continues to successfully administer and lease existing properties.

For additional information about the developer project: https://www.esscala.lt/

Loan protection collateral

Purpose of a business loan

Additional funding requires an amount of € 120 000 to complete the project under development.

Loan collateral

Mortgage of the first line of existing real estate - Mortgage. The loan will be repaid after the sale of all / part of the pledged property, from the sale of the company's development assets, current and future profits or after refinancing the loan.

Investment risk: B (medium)

LTV: 62%

Mortgage property: Land plot (low-rise residential houses, No. 2501-0017-0011 and existing building No. 4400-5573-3032), with a total area of ​​0.1818 hectares and 238.35 m2, at Žilvino str.7, Palanga, Lithuania .

Value of mortgaged property: € 478 000

Interest:

• When investing from 100 EUR - interest 11%

• When investing from 2 500 EUR - interest 11.5%

• When investing from 5 000 EUR - interest 12%

• When investing from 15 000 EUR - interest 12.5%

Loan term

8 months. (opportunity to repay earlier)

Company loan repayment period

Estimated start date of the loan: 2021 04 10

Expected repayment date of the loan: 2021 09 01 - 2021 10 01

Strengths and risks

SWOT analysis of the project beneficiary:

Strengths - First lien on existing real estate - Mortgage.

Weaknesses - Collateral assets are developing.

Opportunities - The borrower's expected average annual interest rate payable is 11 - 12.5%.

Threats - The current economic situation is unclear.