The Company, established in 2018, acquired a 3,623 m² land plot in the Valdlauči region of Ķekavas County, approximately 8 km from the center of Riga. The land is designated for the development of a multi-unit residential apartment building. In 2024, to support the preparation of the construction project, obtain the necessary permits, and commence early development works, the Company secured alternative financing from an external provider.

The Company is now seeking to refinance its existing loan with an external provider in the amount of EUR 127,700. The primary reason for the refinancing is to allow the Company greater flexibility in obtaining a higher financing limit from another service provider or to prepare for refinancing with a bank within the next 12 months. In addition to refinancing, it is requesting additional working capital to continue project development. The additional funds will be used to cover further development expenditures, including architectural and engineering services, preparation of documentation required for regulatory approvals, acquisition of the construction permit, and preliminary marketing activities related to client reservations. 

Accordingly, the Company is seeking a total of EUR 184,200 in financing for 12 months to refinance the existing loan and support the continued development of the residential project. The loan will carry a 10.56% annual interest rate (0.88% monthly) and it will be amortized at the end of the term from the reservation fees of the residential apartment building or by refinancing it to a commercial bank. The loan will be secured with a first-rank mortgage on the land property designated for further development with a current market value of EUR 320,000 (VCG Ekspertu Grupa, 2025-05-08). Resulting in a current LTV ratio of 58%. In addition, the owner of the Company will provide a guarantee. The project risk rate is B (80 out of 100).

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

• The loan is secured with the real estate under development with the current market value of EUR 320,000. The current LTV ratio stands at 58%. 
• The owner of the Company will provide a personal guarantee. 
• The Company aims to obtain the construction permit by September 2025 and begin accepting reservation fees from clients.
• Two equity partner offers are currently under consideration, which would provide sufficient own capital to enable future financing through a commercial bank.
• Interest payments during the loan term will be covered from the Company’s own equity, ensuring stability and reduced reliance on external cash flow.