Mortgage-secured financing for a real estate development company
The Company was established in 2017 and it is engaged in the real estate management business - it owns land plots near Valmiera city for further development – construction of modular apartment homes. Meanwhile, modular panels for the project are produced by a related company which has been operating in this business for more than 15 years.
In 2023, the Company completed a development of a six-apartment building in Mūrmuiža village near Valmiera city. Currently, 4 out of 6 apartments are sold. While the sale of the remaining apartments is pending, the Company wants to release capital and speed up the production of its other projects.
Therefore, the Company is seeking EUR 67,913 financing for 36 months to settle with suppliers for materials. The loan will carry a 10.44% annual interest rate (0.87% monthly) and it will be amortized monthly. The loan will be secured with a first-rank mortgage on one of the unsold apartments in Mūrmuiža with a market value of EUR 100,000 (LTV 68%). In addition to a mortgage, personal guarantees from both owners and a guarantee from the related company also will be provided. The project risk rate is B (81 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 a mortgage to a recently built apartment with a market value of EUR 100,000 (LTV 67%).
- Personal guarantees from both shareholders and a related company are provided.
- The Company's management has a track record and experience in the execution of a similar development project.
- The Company is a returning client of Capitalia and has successfully repaid more than EUR 175,000 of loan principal.
Latvia 
Lithuania 
Estonia