Object The investment object consists of six apartments with a total area of 398.30 sq. m in a multi-apartment residence building. The apartment building is comfortably located in the very heart of Riga, yet away from the main traffic flow, in a prestige, quiet and highly attractive residential area. The building is a part of Riga’s historic centre and a part of the state monumental building collection, emphasizing its value and significance. Being at the centre of the capital city, the property is in close proximity to the most popular business, commercial and entertainment areas, Old Town, parks and museums. The building is undergoing renovation works, including complete façade restoration, installation of the elevator, repair of the staircases and an electrical rewiring, which all will result in an increase of the building’s and its apartments’ value. The renovation works will be finished in Spring 2019. The loan target The borrower is looking for a loan to purchase and renovate six apartments in the building. Loan and interest will be repaid by funds received from the sale of the property units. By offering a sales price lower than the set future value of the apartments, the purchase deals will be closed by July 2019. Amount of the loan The loan amount will comprise EUR 386,400 and it will carry a 15% (+2%*) annual interest rate. Independent valuation of the property 557 000 EUR – current value of the apartments 807 000 EUR - future valuation of the apartments (after completing building renovation works) The borrower LP Private Property SIA, it’s managers and owners have long-term experience in residential real estate and has successfully completed a number of similar projects. Security 1st rank mortgage Repayment term 6 months Repayment of the loan The principal payment and the accrued interest will be paid out at the end of the term. *Bulkestate incentive payment For this project Bulkestate offers the following special incentive pay (cash-back) for investors: Investors making EUR 10,000 or larger investment will receive 1% incentive payment from the invested amount, while Investors making EUR 25,000 or larger investment will receive 2% incentive payment from the invested amount.
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