The Company, established in 2020, is an affiliate of a larger real estate developer in the Liepāja region. The group specializes in acquisitions of unfinished or poorly managed apartment buildings, renovates them, and sells refurbished apartments.

Recently, the Company acquired an administrative building in Liepāja city. The Company has developed the project and received the construction permit to transform the acquired property into a 15-apartment house. The total construction costs are estimated at EUR 735 thousand, while the anticipated sales revenue is estimated at EUR 1.5 million (including VAT).

Therefore, the Company is seeking EUR 103,000 financing for 24 months to finance further development of the apartment house. The loan will carry a 12.96% annual interest rate (1.08% monthly) and it will be amortized at the end of the term from sale of completed apartments.

The loan will be secured with the property under development with the current market value of EUR 150,000. In addition, the related company with an equity capital of EUR 708,000 and the sole shareholder of both companies will provide guarantees. The project risk rate is B (82 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 150,000.

• The related company with equity of EUR 708,000 and the owner of both companies will provide guarantees.

• The shareholder has almost 10 years of experience in the industry and has successfully completed similar projects in the same region.

• The final value of the pledged property after the completion is estimated at at least EUR 990 thousand resulting in an LTV of not higher than 51% considering all the financing tranches.
• The cost estimation, construction progress, and usage of funds will be checked by a certified construction supervisor.