The Company was established in 2020 to develop real estate projects in Ādaži. It has already sold one property consisting of 22 properties for residential construction. Currently, the Company is developing another land plot in Ādaži municipality located in a private residential house area. The development plan implies dividing the land plot into 56 new separate land properties and facilitating the necessary infrastructure to sell them as land plots for private residential construction. The development works include dividing the land plots into separate properties, building gravel roads, and constructing centralized water, sewage, and electricity supply to each new land plot. The Company acquired the land plot in 2020. At the end of 2022, Capitalia issued financing of EUR 150,000 for this development project and most of the development works have been done already.

The development of the land plots is in the final stage and the Company has to construct an electricity connection for each separate land plot and construct the final gravel road covering. Capitalia already has granted financing for this project in the amount of EUR 212,310 and now the Company needs to cover the next invoice for construction of the electricity connection.

Therefore, the Company is seeking EUR 61,620 financing for 11 months to cover the next invoice to the electricity constructor. The loan will carry a 12% annual interest rate (1% 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 460,000. The project risk rate is B (85 out of 100).

In total, the financing limit approved for this development project is EUR 350,000 (including the previous, this, and the third-final tranche to fully complete the works). All tranches will be secured with a one-shared mortgage to the real estate property under development.

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 on the land plot to be developed with the current value of EUR 460,000 and a commercial pledge on the Company’s assets with a balance sheet value of EUR 242,406. 
• 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.
• 45 out of 56 land plots are already reserved by customers. 
• To fully repay the loan the Company must sell less than 20 out of 56 land plots.