Detail Descripton

Introduction

Purpose of funding

• Residential land development project (you can get acquainted with the projected private house project in visualizations and photos)

Loan protection

• 9 residential land plots, first-line mortgage.

Project return on investment and interest payment

• Investments from 100 €. 

• Annual return on project investment from 11% (investment conditions are described in more detail in the Details section)

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

• Loan term: 15 months

• Interest is paid monthly. Loan repayment at maturity.

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 a planned investment project, land development, preparation works and start of construction.

In order to ensure the need for financing, the Borrower pledges 9 residential land plots located at Latgalos str.  Palangos city municipality, Lithuania.

Loan terms

• Loan amount: € 197 500

• Loan term: 15 months

• Value of collateral: EUR 395 000

• LTV ratio: 50%

• Project risk: C (higher)

• Loan protection: mortgaging property on a primary mortgage

Interest:

• When investing from 100 EUR - interest 11%

• When investing from EUR 500 - interest 11.25%

• When investing from 1 500 EUR - interest 11.5%

• When investing from 3 000 EUR - interest 11.75%

• When investing from 9 000 EUR - interest 12%

• When investing from 15 000 EUR - interest 12.25%

Collateral information:

• Addresses of the mortgaged property: Latgalų str. 7, 9, 10, 12, 13, 15, 17, 19, 21, Palanga, Lithuania.

• Type of real estate: Land plots (residential) with a total area of ​​1.5314 ha.

• Value of collateral: EUR 395 000

• Documentation: property valuation report.

• Reporting date: 2021 of April 26th

• Evaluator: LTD Ober haus

• Mortgage: Primary mortgage

Borrower

LTD "Ritata" is engaged in concluding, purchasing, selling and developing real estate contracts.

The company's shareholders have experience, are well acquainted with the specifics of their work in real estate, have been engaged in real estate transactions in the market for more than 4 years. In 2021 the Company value of the balance sheet assets amounts to more than 0.5 mln and the company's projected profit is 0.1 million euros.

Loan protection collateral

Purpose of a business loan

The funding required for this phase is EUR 197 500, which will be used for the development and construction works of the project.

Loan collateral

First-line mortgage on existing real estate. The loan will be repaid upon sale of the company's development assets, from the company's profits or after refinancing the loan.

Investment risk: C (higher)

LTV: 50%

Pledged property: 9 residential plots with a total area of ​​1.5314 ha, located in Latgalos str. Palanga City Municipality, Lithuania.

Value of pledged property: EUR 395 000

Interest:

• When investing from 100 EUR - interest 11%

• When investing from EUR 500 - interest 11.25%

• When investing from 1 500 EUR - interest 11.5%

• When investing from 3 000 EUR - interest 11.75%

• When investing from 9 000 EUR - interest 12%

• When investing from 15 000 EUR - interest 12.25%

Loan Term

15 months (with the possibility to return the money earlier, but not earlier than after a period of 3 months).

If the borrower repays the loan amount or part of it earlier than 3 months before the 15-month term, he undertakes to pay interest for a period of 3 months. After a period of 3 months, the borrower can repay the loan (with applicable interest) at no extra charge.

Company loan repayment period

Estimated start date of the loan: 2021 05 25

Estimated repayment date of the loan:  2022 03 01 - 2022 04 01

Strengths and risks

SWOT analysis of the project beneficiary:

Strengths:         - First rank joint mortgage on existing 9 real estate plots; 

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

                           - The borrower's company is new.

Opportunities: - The borrower's expected average annual interest rate payable is 11 - 12.25%. 

Threats:            - Unstable economic situation, plots are less liquid.