The Company, established in 2011, is a real estate property management company. In 2016 the Company finished its first renovation project of a 4-apartment building in Riga. All 4 apartments are currently rented out to tenants and the Company is receiving stable rental income. In 2022 the Company purchased another building in the same area of Riga. The building was purchased with the Company’s own funds and loans from the Company’s owners and other related businesses. The design of the renovation and reconstruction of the property has been completed and reconstruction works have already been started. After a full renovation, the property will be divided into 8 separate apartments that will be offered for rent. Therefore, to finish the renovation process, the Company is seeking EUR 205,340 financing for 12 months to settle with the construction company for completed works. The loan will carry an annual interest rate of 11.28% (0.94%) monthly with monthly interest payments and the principal repayment at the end of the term. Principal repayment is planned from loan refinancing in a commercial bank for a longer term. The loan is secured with a pledge on 2 sections of the building to be renovated with a market value of EUR 560,000. In addition, a personal guarantee from the Company’s manager is provided.

In total, the Company will receive up to EUR 411,000 in financing from Capitalia in 2 separate tranches. The current is the first financing tranche. The second tranche loan of EUR 205,350 is expected to be raised in March 2022. Both tranches will have the same pledge. Therefore, the total LTV value for both tranches not considering additional renovation works and investments done in the property will be 73%.

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 property to be developed with the current market value of EUR 560,000 according to Latio’s valuation from January 3rd, 2023.
• A personal guarantee from the Company’s manager is provided.
• The Company has a previous successful experience in a similar real estate project development.
• The Company has a significant adjusted equity-to-assets ratio of 92%.
• The Company has 10 years of experience in the real estate industry.
• The Company has been profitable for the last 5 years.