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 involves 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 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, including the gravel road system, along with centralized water and sewage infrastructure. 

The development is now in its final stage, with the remaining tasks consisting of constructing individual electricity connections to each land unit and completing the final installation of asphalt road covering. These final improvements are intended to enhance the overall appeal of the properties, aligning with client expectations for higher-quality access roads.

Capitalia has already provided financing for this project in the amount of EUR 273,930, covering two out of three tranches. The Company now intends to proceed with the third-final tranche to upgrade the road covering to asphalt. In conjunction with this improvement, adjustments will be made to the initial road construction plan. Following the completion of the asphalt installation, the road will be officially commissioned. Once the road is commissioned, the municipality will grant official addresses to each subdivided land plot, enabling the Company to begin concluding sales agreements with buyers.

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 292,685.
• 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.
• Out of the total 56 land plots, 39 land plots are pre-sold and reserved already.
• To fully repay the loan the Company must sell less than 20 out of 56 land plots.