Mortgage-secured financing for a real estate development company in Jelgava
Summary
The Company is an SPV of a larger development company with a long history in the real estate industry. It intends to purchase a building in the center of Jelgava. The first floor is fully rented out with a monthly rental income exceeding potential payment schedule monthly payments. Later, when the building is purchased, the Company will finish second floor replanning, finish the inner works and fully rent out the property. The current planning of the second floor allows the Company to develop 9 apartments. The Company intends to repay the loan from the refinancing with the bank or sale of apartments.
Therefore, the Company is seeking EUR 330,240 financing for 24 months to acquire a building in the center of Jelgava. The loan will carry a 9.48% annual interest rate (0.79% monthly) and it will be amortized at the end of the loan term. The loan will be secured with a first rank mortgage on the real estate valued at EUR 916,000 (LTV 36%). The owner and a related company will provide their guarantees. The project risk rate is 91 (A out of 100).
Key investment highlights
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 916,000 (LTV 36%).
- The sole shareholder and related company will provide a personal guarantee for the loan.
- The first floor is fully rented out and it generates stable monthly income.
Latvia 
Lithuania 
Estonia