The Company has been engaged in real estate development and management activities for more than 15 years. The Company has previously successfully developed 5 multi-apartment building projects in Rīga and Baloži.

The Company is constructing an 8-apartment building in Riga. The total project costs are estimated at EUR 852 thousand, while the anticipated sales revenue is estimated at EUR 1,264 million (including VAT). The Company’s own participation in the project will be around EUR 250 thousand. The building permit has been received, and the Company intends to initiate construction as soon as possible.

Therefore, the Company is seeking EUR 44,237 financing for 24 months to proceed with construction works on the property. The loan will carry a 11.52% annual interest rate (0.96% monthly) and it will be amortized at the end of the term from the sale of the developed apartments or by refinancing it to a commercial bank. The loan will be secured with a mortgage on the property under development with a value of EUR 260,874.9 and an estimated future value of EUR 853,000 (EUR 1,032 million including VAT). In addition, a related company and the owner of both companies will provide guarantees. The project risk rate is B (87 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 the real estate under development with the current market value of EUR 289,597.
• The related company and the owner of both companies will provide guarantees.
• The Company has more than 15 years of experience in the industry and a proven track record of successful real estate development projects in various economic cycles.
• The related company which will provide a guarantee for the loan is an existing client of Capitalia with an excellent payment discipline.
• The final value of the pledged property after the  completion is EUR 853,000 (EUR 1,032 million including VAT)  resulting in the LTV of 73% considering all the financing tranches.
• The cost estimation, construction progress and usage of funds are checked by a certified construction supervisor.