The Company is engaged in the real estate development business in Liepāja city. The Company is a part of a larger real estate development business operating since 2016. The Company acquires unfinished or poorly managed apartment buildings, renovates them, and sells refurbished apartments. After the sale of apartments, the Company also provides building management services that generate an additional revenue stream. Since its establishment, the Company and its related entity have already completed more than 15 development projects in Liepāja.

Currently, the Company has ongoing development of a 15-apartment house in Liepāja which required most of the group’s working capital. Meanwhile, the related entity provides construction to another developer in the region and it gets paid after a certain stage of work is completed. The Company’s own development project and a larger external construction project of the related entity led to a lack of working capital.

Therefore, the Company is seeking EUR 153,780 financing for 6 months to settle with suppliers for materials in its own development project. Part of the loan will be used to support the related company’s working capital needs until it gets paid for the construction works. The loan will carry a 10.44% annual interest rate (0.87% monthly) and it will be amortized at the end of the loan term. 

The loan will be secured with a first-rank mortgage to an apartment in Liepāja with a market value of EUR 224,000 (LTV 69%). The sole shareholder and related entity will provide guarantees for the loan The project risk rate is B (88 out of 100).