Investment object Our client, LP Private Property SIA, will acquire commercial premises on Nometnu Street 18, Riga (605.9 square metres) with an intention to find long-term tenants and participate in a refurbishment of the building’s façade. Then it will be sold to investors looking for stable lease income in high-quality properties. The building is a part of Riga’s famous Art Noveau collection, a 4-storey apartment building in the Āgenskalns district. The surrounding area is a mix of residential houses and light commercial facilities. It is a convenient location, only 10 minutes away from the city centre and 15 minutes from the Riga airport. Amount of the loan The loan amount will comprise EUR 140,000 and it will carry a 13% annual interest rate. The target of the loan The loan will finance an acquisition of the commercial property. Security The loan will be secured by a first rank mortgage on the property. Independent valuation The market value of the property (according to an independent valuation report) is EUR 280,000 (50% LTV). The borrower LP Private Property SIA, it’s managers and owners have long-term experience in real estate development and has successfully delivered a number of similar projects. Loan term 12 months Repayment schedule Loan and accrued interest will be paid within 12 months after the loan is issued. *Bulkestate incentive payment For this project Bulkestate offers the following special incentive pay (cash-back) for investors by sharing part of its fee received from the client: Investors making EUR 2,500 or larger investment will receive 1% incentive payment from the invested amount, while Investors making EUR 10,000 or larger investment will receive 2% incentive payment from the invested amount.
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