Real estate secured financing for a real estate developer
Summary
The Company has operated in the real estate sector for over 16 years. It generates revenue from multiple streams, including property rentals and real estate development. The Company primarily focuses on developing land plots and furnishing poor-condition apartments, typically acquired at auctions. Currently, the Company holds a long-term loan with a creditor for the purchase of two apartments. To maximize revenue from these apartments, full furnishing is required. Since the current creditor refuses to increase the loan amount, the Company needs additional working capital.
Therefore, the Company is seeking EUR 205,760 financing for 12 months to refinance the 100,000 EUR existing loan and allocate the remaining amount toward completing the development works. The loan will carry a 9.00% annual interest rate (0.75% monthly) and it will be amortized at the end of the loan term. The loan will be secured with a mortgage on 2 apartments located in Vilnius with a market value of EUR 295,000 (LTV 69%). In addition, a personal guarantee from the shareholder will be provided. The project risk rate is B (88 out of 100).
Key investment highlights
There are a number of factors that make lending to the Company an attractive opportunity and the main highlights are as follows:
- The loan will be secured with a first-rank mortgage on a real estate property in Vilnius with a total market value of EUR 295,000 69% LTV).
- The management of the Company has over 16 years of experience in the construction industry.
- The owner of the Company will provide a personal guarantee.
- The Company has managed to maintain a strong 52% equity/asset ratio.
Latvia 
Lithuania 
Estonia