Detail Descripton

Funding requires an amount of € 336 000, and the funds raised for funding will be used to meet contractual obligations on the current creditor, as well as for increasing company capital. This decision will give the borrower time to sell the assets under current market price, meet existing obligations and complete preparations for the sale of the assets.

Debtor

Company title  LTD Erel trading group

Company code  12216805

Company website  http://www.leonardogolf.ee/

Erel Trading Group LTD, engaged in real estate contracting, purchasing, sales and development. Registred capital 0,6 mln EUR. Shareholders AS Erel group (396 000 capital ownership), Faustini Europe SA (60 000 EUR capital ownership), osauhing Alminger (24 000 EUR capital ownership), OU Drevor investments (120 000 EUR capital ownership). Currently company is developing real estate projects, some of them are on sale. Company is specialized in residential real estate development (apartments, villas, etc). Company's total assets over 6 million EUR, equity ratio is more than 35%.  Real estate selling price is approx. 1 800 - 2 100 EUR with VAT.

Pledged property:

• 67,4 m2 size 3-rooms apartment at Mesiheina tee 6-35, Pärnu city, registration number 18183350. 
• 49,1  m2 size 2-rooms apartment at Mesiheina tee 6-36, Pärnu city, registration number 18183650. 
• 50,0 m2 size 3-rooms apartment at Mesiheina tee 6-37, Pärnu city, registration number 18183750. 
• 49,1 m2 size 2-rooms apartment at Mesiheina tee 6-40, Pärnu city, registration number 18183950. 
• 50,0 m2 size 3-rooms apartment at Mesiheina tee 6-41, Pärnu city, registration number 18183950. 

The total amount of financing per m2 is pledged 1268.00 EUR.

Value of mortgaged property: € 517 000

About Leonardo Golf Village, the location of the property:

The Leonardo Golf Village is a one of a kind project in Pärnu. It consists of 10 apartment buildings and 69 private houses. It is located in a rapidly developing area and constitutes one of the most notable new developments in Pärnu. Everything you need for life is at your fingertips. The Leonardo Golf Village offers the solution for a new lifestyle, a unique location in the midst of greenery and quite; bus stop 50 m, kindergarten and supermarket 300 m, golf track and beach 500m.

Strengths and risks

Strengths:

• The borrower made payments on time and without delay. (current loan at Nordstreet)
• The first order of real estate pledge - mortgage.
• The project is near the end.

Weaknesses:

• Borrower 's activities are in a competitive sector.
• In 2020, due to the quarantine introduced caused by Covid - 19, the company had a loss.

Possibilities:

• The annual interest rate payable by the borrower is 12%.

Threats:

• Loan refinancing.
• Rising cost of building materials.

NORDSTREET takes the following measures to ensure a safer 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 investors. Upon application by the Debtor, the financing may be considered to have been successfully completed with a smaller amount collected, the financing of the project may be divided into several stages and / or the financing period of the project 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 rights of recourse (claim rights). NORDSTREET may provide the financiers with the possibility to transfer these claim rights to other users of the platform on the Secondary Market in accordance with the User Terms.
• The activities of UAB Nordstreet are supervised by the Bank of Lithuania and UAB Nordstreet is included on the Public List of Operators of Crowdfunding Financing Platforms administered by the Bank of Lithuania.