Mortgage-secured financing for a real estate development project
Summary
The Company was established in 2020 to develop real estate projects in Ādaži. It has already sold one property consisting of 22 land plots for residential construction. Currently, the Company is developing another land plot in Ādaži municipality located in a private residential house area. The development works include dividing into the 56 land plots as separate properties, building roads, and constructing centralized water, sewage, and electricity supply to each new land plot.
The development of the land plots is ongoing, due to the legal delays the execution got delayed and the initial loans are due already while the development project is not completed yet, therefore, the Company is seeking EUR 278,040 refinancing for 12 months. The loan will carry a 10.08% annual interest rate (0.84% monthly) and it will be amortized at the end of the term from the sale of the land plots. The loan will be secured with the shared first-rank mortgage to the land property under development with the current market value of EUR 473,000. The project risk rate is B (85 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 shared first rank mortgage on the land plot to be developed with the current value of EUR 473,000.
- The owner of the Company has over 15 years of experience managing a private investment management company.
- The loan has a clear repayment structure from the sale of developed properties.
Latvia 
Lithuania 
Estonia