The Company was established in 1991 and it initially was engaged in the retail of computers and related equipment in Jelgava, Latvia. However, in 2016 the Company started operations in real-estate development while the retail business was suspended. Nowadays, the Company is known as a real estate developer, and it has completed 3 sizeable real estate development projects in Jelgava district.

In November 2023, the Company acquired a building in the center of Jelgava. Currently, the building is used as an office and the Company wants to renovate it, divide it into 18 apartments, and sell separate apartments.

To fully renovate the building, and divide it into apartments, the Company is seeking additional financing of EUR 156,000 for 24 months. The loan repayment is based on the completion and sale of the newly built apartments. The loan will carry a 12.48% annual interest rate (1.04% monthly) and it will be amortized at the end of the term. The project’s risk rating is A (91 out of 100).

The Loan will be secured with a first-rank mortgage to the property under renovation currently worth EUR 572,000.  Also, the sole shareholder will provide his guarantee for the loan. Another financing tranche of EUR 156,000 is pre-approved to fully complete the renovation after the first part of financing is fully used. Both tranches will be secured with one - shared mortgage on the same property. Considering the current market value and combined financing amount of both tranches (EUR 312,000), the LTV figure will be no larger than 54% and is likely to notably improve during the renovation works.

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 a first-rank mortgage on a property with a current value of EUR 572,000.
• The Company has a strong equity-to-assets ratio of 65%.
• The sole shareholder will provide a personal guarantee for the loan.
• The Company has been operating for more than 30 years.
• During the renovation works, the market value of the pledged property will notably increase and reach EUR 1.23 million.