Object The property with the total area of 1255,1 sq.m, consists of 13 economy-class apartments and commercial areas on the ground floor. The 4-story masonry building, finished in 1910, is located in the very heart of Āgenskalns district. The area is significant with well-developed infrastructure and its proximity to the city centre, making it one of the most desirable residential areas in Riga. The surrounding area is a mix of residential houses and light commercial facilities. Right across the street is located a newly-developed shopping mall Mellene, while two minutes away – freshly renovated farmer’s market of Āgenskalns. The building has a convenient location, being only 10 minutes away from the city centre and a 15-minute drive from Riga airport. The residential building is in good condition, yet the planned renovation works will include complete repair of the heating system and installation of the electricity grid, renovation of the staircase area and building’s façade as well as improving the surrounding territory of the building. The loan target The second stage funding of the loan is intended for partly renovation works of the building and the surrounding territory. Out of three in total, this is the second funding stage of the project. The sales of apartments will be ensured in a 12-month time period, providing the funds for the repayment of investments and accrued interests to investors. Location, quality of the building determine a fast sales process and high commitment from the buyers to complete the purchase. The high future value of the property after completion of renovation works and the demanding real estate market assure the safety of the deal and successful repayment of investments. Amount of the loan The loan amount for the 2nd stage will comprise EUR 310 000 EUR. Independent valuation of the property 1 502 700 EUR – the future value of the property. The overall amount for 1st and 2nd stage funding stages will comprise 51% of the FLTV. The borrower The borrower is SIA LP Private Property - a company that cooperates with Bulkestate in various projects under the same management team supervision. SIA LP Private Property managers and owners have long-term experience in real estate development and have successfully delivered a number of similar projects. The company has proven itself to be a reliable partner, capable of fulfilling its obligations, which is also reflected in the previously repaid investment objects on Bulkestate platform. Security The first stage of the loan has been already successfully funded and is secured by mortgage collateral. The second stage investment is intended for renovation and improvement of the surrounding territory, which will significantly increase the value of the property. As an additional guarantee to investors, the borrower’s company will provide a guarantee in the form of the commercial pledge in favour of Bulkestate. The loan will be secured by the guarantee from the owner of the borrower’s company and the property will have full insurance for the entire loan term once it is registered in the Land Registry. Repayment term 12 months Repayment of the loan The principal amount of the investment and the accrued interest will be paid out in a single payment at the end of the repayment term. *Bulkestate incentive payment For this project Bulkestate offers the following special incentive pay 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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