Real estate secured financing for experienced construction company in Rīga
The Company has been engaged in construction and real estate management for more than 15 years. The main client of the Company is its related entity – a developer of residential apartment houses. Approximately 90% of revenue is generated by construction services while the rest comes from management services of apartment houses built by the related entity. The Company is finalizing construction works of its 12-apartment building project in Riga. A usage permit has been acquired for its building and 11 out of 12 apartments are already sold. The last apartment is expected to be sold within 3 to 4 months. Also, the related company is currently building a 8-apartment building in Riga, with planned sales revenue of EUR 1.03m.
Therefore, the Company is seeking EUR 106,700 financing for 12 months to refinance the current loan at Capitalia. The loan will carry a 9.6% annual interest rate (0.8% monthly) and it will be amortized at the end of the loan term from the proceeds of the sale of apartments. The loan will be secured with real estate collateral with a market value of EUR 154,000. In addition, the 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 real estate collateral with a market value of EUR 154,000 (LTV 69%).
- The related company and the owner of both companies will provide guarantees.
- The Company has more than 15 years of experience in the industry.
Latvia 
Lithuania 
Estonia