Refinancing loan for an experienced real estate developer
Summary
The Company has been operating in the construction industry for the past 13 years, with its primary revenue stream coming from real estate development. Its core business activity is the construction of new semi-detached houses in the Vilnius district. In addition, the Company provides various building and furnishing services to both private clients and corporate customers.
Currently, the Company has an existing loan with another creditor that is nearing maturity. To ensure uninterrupted operations until the sales of its ongoing housing projects begin, the Company wants to refinance this loan.
Therefore, the Company is seeking EUR 154,500 financing for 12 months to refinance their existing liabilities. The loan will carry a 8,64% annual interest rate (0.72% monthly) and it will be amortized at the end of the loan term. The loan is secured with a mortgage on a newly constructed, 80% finished residential semi-detached apartment located in the district of Vilnius with a land plot, with a market value of EUR 282,800 (55% LTV) and a personal guarantee from the shareholder. The project risk rate is A (90 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 a Vilnius district with a total market value of EUR 282,800 (55% LTV);
- The management of the Company has over 13 years of experience in the construction industry;
- The owner of the Company will provide a personal guarantee;
- The Company has managed to achieve an increase in year-to-year revenue.
Latvia 
Lithuania 
Estonia