This investment opportunity allows investors to fund a bridge loan for sales period of a small apartment building with 11 apartments and 2 business premises in Kohila parish, Vabaduse 16, Kohila, Estonia by the developer Starelement OÜ.
This is the 4th funding round of the development project. The building is completed and 85% of the apartments are sold.
The Sponsor seeks for funding in the amount of EUR 320 000 to refinance existing bridge loan.
Necessity of such funding has occurred due prolonged process of obtaining use permit for the building. Some credit institutions have hesitated to accept apartments without use permits as collateral to secure housing loans, which has prevented the Sponsor to finalise sales transactions.
Ownerships of six apartments have been already transferred and sales are finished. Five apartments are sold or booked with prepayments and are waiting for use permit which would allow to formalise the transactions and ownership transfer. Two apartments are currently available.
Most of the technical approvals needed for the use permit have already obtained. The Sponsor expects the use permit to be issued by the end of January.
The Sponsor has issued 100% share pledge in favour of Crowdestate Collateral Agent OÜ for the loan period. The loan will be secured also by mortgages on seven apartments in the building. Market value for these apartments in Vabaduse 16 building is approx EUR 443 000.
This investment opportunity offers investors a set fixed interest rate of 14% p.a. for a loan term of 6 months.
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