The Company was established in 2012 and its main operations are production of veneer, parquet, decorative wooden panels, and other wooden products. The main clients of the Company are other producers of furniture, and wooden flooring and various smaller local manufacturers as well as private individuals. 

The Company owns a land plot next to its production facilities near the Riga center, on which the Company plans to develop multiple 4-storey apartment buildings. The Company has recently received a construction permit for initial works and thus wants to proceed with the preliminary works as soon as possible to save time and avoid delays. 

Therefore, the Company is seeking EUR 154,800 financing for 12 months to conduct preparation works for the further land plot development. The loan will carry a 12.36% annual interest rate (1.03% monthly) and it will be repaid at the end of the term. The loan would be repaid from either bank financing for the whole development project or proceeds from the sale of two other land plots by a related company.

The loan will be secured with a first-rank mortgage to a land plot property under development with a current market value of EUR 1.389 million. The beneficial owner of the Company will provide a personal guarantee for the loan. The project risk rate is B (85 out of 100).

The approved limit for the Company is EUR 462,480, which will be issued in three tranches. All financing tranches will be secured with one - shared mortgage to the property under development with the current certified value of EUR 1.389 million. Thus, considering the total planned loan exposure,  the LTV will not exceed 33%.

There are a number of factors that make lending to the Company an attractive opportunity and the main highlights are as follows:

• The loan will be secured with the real estate under development with the current certified value of EUR 1,389,000 and the LTV for the whole project will not exceed 33%.
• The loan has clear and pre-agreed multiple repayment sources -  proceeds from the sale of other land plots or refinanced with a bank loan.
• The beneficial owner of the Company will provide a personal guarantee for the loan.
• The Company has no financial liabilities and has relied on internal financing.
• The Company’s holding entity owns 50% of shares in known and reputable real estate management companies with a combined equity capital of EUR 4.06 million.