119 000.00 €
Type: Buy to Let
Mortgage rank: First
Interest payment schedule: Monthly
Min. amount of investment - € 100
Update from the originator:
The mortgage on the S12 assets has been successfully placed.
Please find the document in the documents section.
|Criteria||From a+ to d||Project rating|
Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Rental Property Insurance
InRento team is introducing a new buy to let investment opportunity - S12, Vilnius. The investment case consists of modern office space located near Vilnius, Sporto str. 12.
In 2021, the premises were divided and renovated. The final installation of the premises is currently being completed. These premises will be rented as separate offices, thus ensuring the needs of tenants and achieving a higher return on rent to investors.
During the financing of the project, the project owner will additionally invest in the installation of the premises, thus increasing their value. The premises consist of two cabinets and a bathroom.
As the premises currently don’t have tenants, the project owner undertakes to pay investors 7% annual interest until the premises are leased. The project owner also ensures a minimum annual net rental yield of at least 6.5% to the investors.
Reasons to invest in the S12 project in Vilnius:
Capital growth change:
The prices of these types of premises in this district of Vilnius increased +83,6% in the last five years.
The terms of the new rent agreement are currently being negotiated. The project owner ensures a minimum annual net rental yield of at least 6.5% to the investors.
Financial terms of the investment:
InRento investors are granting a loan to the borrower. The loan is secured with a first-charge mortgage which in case of the borrower’s inability to fulfil financial obligations would be used to repossess the asset.
The revenue-share between the project owner and the investors is set at 85/15, meaning that the borrower is obliged to distribute 85% of the income to the investors.
The capital growth distribution:
15,000 - 29,999 EUR - the capital growth will be distributed in the following structure: 50% investor / 45% borrower / 5% InRento.
30,000 EUR and more - the capital growth will be distributed in the following structure: 55% investor / 45% borrower.
Rental income (interest)
This project has a 60 days funding period. This project rental yield will be distributed on July 10th and August 10th, even if the project is not fully funded.
The project owner (borrower):
UAB ‘’Nebas’’ is a growing and profitable personal investments company. Company manager - Nerijus Baliūnas. He has more than 8 years of management experience, has launched and sold his company, and is active in investment activities for over 7 years. N. Baliūnas works in the ‘’Business Angels Fund II’’, which owns up to 3% of the holding company of UAB ‘’InRento’’.
When is it possible to "exit the project’’?
When the project is fully funded you will be able to sell your investment on the secondary market. The fee for the secondary market transactions is 2% of the principal value, which is being charged to the seller.
What would happen if the tenants would leave the property?
In a tenant cancelling the tenancy scenario, the borrower would be paying a 2% annual interest rate the first month of vacancy. If the borrower would not rent out the assets within 3 months, the fixed-interest rate would be increased to 7% 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: 45% investors / 45% borrower / 10% InRento. The project owner assumes potential loss if the property is sold at a lower price.
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 Tennant and it can take time to find the new tenant.
Investing with InRento, is similar to owning a rental property, however with us you don't have to worry about day-to-day property management and in the periods of vacancy, the borrower is required to distribute fixed-interest payments.
|10.07.2021||Paid||No||12 July 2021, 15:16|