EvoEstate comment

 EvoEstate pays investors' attention to the LTV number calculations. The number has been calculated taking into account the predicted future value.

The originator's explanation is below:

According to the appraisal, the apartments were appraised earlier in the finishing stage. However, they will be fully equipped (kitchen, furniture, appliances), so the purchase price is 289000 EUR. The installation estimate is added to the value, so the LTV is considered to be 100 per cent. The appraisal will be updated as the sales process begins.

They also confirm that the apartments will be furnished by the end of funding.

Payment schedule

A payment schedule is not applicable for this project. The interest generated by the project depends on the accommodation of the properties. The apartment lease was started on November 30, 2021. The first interest payment (after deducting administrative costs) will be paid to project investors on 2022-01-15. Payments are made for the results generated during the previous month. The return of the project (based on historical data) can be found in the project description.

Detail Descripton

Leaders of short-term real estate rent administration in Lithuania Houseys present a new investment opportunity on the NORDSTREET platform: Buy to let - earn from rising property prices. 

Financial investment conditions:

• Fixed interest rate: 3%
• Additional variable interest rate: up to 6.47%

The interest payable consists of a fixed annual interest rate + additional variable interest rate. The variable part depends on the accommodation of the apartments and the rental income.

Share of rental income (100% of rental income is allocated to investors):

Interest will start to accrue from the moment the property is pledged in favour of investors. The interest payment will be made on the 20th day of each month. The funding term for this project is 30 days.

Distribution of capital gains:

• For investors: 50%
• Houseys: 40%
• Nordstreet: 10%

If the borrower sells the property at a higher price than it was acquired, the capital gain will be distributed in the above proportion. Amount will be divided after deducting taxes related to the sale of assets.

The loan is planned to be repaid by the end of the project term from the expected growing income of the company, increasing profits, sale of assets or refinancing of the loan.

Borrower:

SIA Riga Lacplesa 24 is a company established as a special purpose company for this project. Although the company developing the project is new, the team of shareholders have extensive expertise in this field: the company's shareholder Tomas is the founder and CEO of the real estate management company Houseys!

Development Property Administrator Houseys:

Founded in 2017, Houseys is a professional short-term lease management service provider. The company uses a wide range of innovative technologies and has an experienced team to ensure optimal accommodation and attractive returns for property investors.

Currently, the company operates in Lithuania (Vilnius, Kaunas, Palanga) and Latvia (Riga). Houseys offer a wide range of property management services. Houseys property owners can sit back, relax and enjoy the returns without breaking a sweat!

In addition to property management, Houseys also provide Online Onboarding services for owners who want to manage their property on their own but need initial technical and consulting assistance. Furthermore, they advise real estate developers and landlords on all matters related to renting, both short-term and long-term.

Total number of properties for short - term management in Houseys portfolio: 70

Houseys are founded and managed by Tomas Grizas, who is the CEO of the company. Tomas is an entrepreneur with his expertise being in real estate property management. Not only he is managing Houseys, Tomas also advises major real estate developers on all matters related to rent, pricing, innovative real estate solutions, and more.

Collateral. Properties being purchased:

• Lacplesa st. 24 – 5, Riga, Latvia, property number: 0100 926 6889, property size 18.8m2
• Lacplesa st. 24 – 33, Riga, Latvia, property number: 0100 926 6874, property size 19.2m2
• Lacplesa st. 24 – 34, Riga, Latvia, property number: 0100 926 6878, property size 31.2m2
• Lacplesa st. 24 – 39, Riga, Latvia, property number: 0100 926 6877 , property size 31.6m2

Strengths and risks

Strengths:

• The first order of real estate pledge - mortgage.

Weaknesses:

• Borrower 's activities are in a competitive sector.
• The LTV rate of the project is high.

Possibilities:

• The annual interest rate payable by the borrower is 3%.

Threats:

• A young company.
• The property is in the development stage.

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.