Raunas street apartment building | Round 02
Remaining 4 days

Need:148 868.00€
Min.:0.00€
Interest rate:26%
Period:6 months
Target: 200 000€
Min. target: 25 000€
Opens: 2021/02/08
Expires: 2021/03/08
Type: Real Estate
Location: Latvia
Investors: 356

SUMMARY

The current investment opportunity offers CROWDESTOR investors to make a secured loan to buy-out 1/3 of a hotel/apartment building located in Raunas street 44 and Raunas street 34a, Riga, with a total building size of 6943 m2

The funds raised in the 2nd fundraising round will be used to purchase 1/3 of the real estate object. Full real estate object consists of the previously mentioned building with a total size of 6943m2 and, according to a property sharing agreement with a neighbor, a land plot of 6292 m2

The building will be refurbished, and hotel operations will be suspended. The building will be transformed into an apartment building where premises will be registered as individual units in separate sections of the land register and placed for sale and lease. The real estate is a 6-floor building. The building is in usable/good condition, and currently, it is ~ 2/3 occupied by tenants. 

The market value, when each apartment is legally divided into units as a separate real estate, according to the valuation report (find attached), is 6 370 000 EUR, meaning a valuation of 2 123 333 EUR for 1/3 of the property.

The loan will be secured by collateral on the Borrowers shares.  

The real estate is located in Riga's quiet area, a 20-minute drive from the city center.

LOAN

Borrower: CR 10
Minimum target: 25 000 EUR
Maximum target: 200 000 EUR
Loan period: 6 months
Interest rate: 26% p.a.
Total funds raised in all 3 rounds for the buy-out and refurbishment:  730 000 EUR
CROWDESTOR BuyBack fund: Yes
Repayment: Interest and principal in full at the end of the Loan Term
Collateral: Pledge of shares
Location: Latvia

Remember - interest rate payments start calculating from the day you make your investment!

THE PROJECT

All real estate located in Raunas street 44 and 34a consists of a land plot with  ​​18,889 m2. The object to be purchased is part of the real estate and is considered a separate object of immovable property - land plot "A" with an area of 6292 m2 and building on it - hotel/apartment building with a size of 6943 m2.  (Cadaster No.: 0100 089 0154 005).

The Buyer, which is an SPV controlled by CROWDESTOR Security Agent, will buy the real estate object. Simultaneously a purchase agreement is signed for the remaining 2/3 of the real estate, and all rental agreements and other encumbrances will be removed. 

To buy the remaining 2/3 of the real estate, all objects will be pledged to the senior lender. Security for CROWDESTOR loan will remain 100% pledge on shares of the Borrower. 

The hotel building will be refurbished and legally transformed into an apartment building. Apartments will be with a full finishing, bathrooms, built-in kitchens. The apartments' planned area will be 19 m2, which corresponds to the current standard room area. Premises will be registered as individual dwelling properties in separate sections of the land register.

The first floor of the building will be divided into apartment properties. Corridors, stairwells, elevators, entrance and will be left for common use. Each apartment will have a relevant undivided share of the building's joint property (including a separate storage room in the basement) and a land plot of 6292 m2 attached to the building.

 

Information regarding the existing buildings on the whole plot of land forming part of the immovable property and its identification.

Name of the building Cadaster No. Number of Floors Area of Premises (m2) Notes

Hotel/apartment building

0100 089 0154 005

6 and a basement

6943,1

Attached to the building part of the land plot "A" 6296 m2area.

BUILDING CHARACTERISTICS

Current situation: Student Hotel

A 6-storey hotel building was built in 1965, renovated in 2006. The building was originally built as a service hotel/dormitory, divided into 17-18 m2 rooms and common areas. The course of the reconstruction is generally preserved in the previous plan.

Technical condition:

In 2006, a complete renovation of the building was carried out, the premises are maintained in good technical condition—ceiling height 1st-5th floor 2.45 m; 6th floor 3.05 m; basement 2.30 m.

Functional application:

Basement restrooms connected to the restaurant and conference hall, technical and auxiliary rooms, warehouses
1st floor hotel reception and administrative rooms, restaurant/bar, internet room, beauty salons, hairdressing rooms, common areas, and auxiliary rooms
2nd floor administration rooms, conference rooms, hotel rooms, common areas, and auxiliary rooms
3rd floor administration rooms, conference rooms, hotel rooms, common areas, and auxiliary rooms
4th floor conference halls, hotel rooms, common areas, and auxiliary rooms
5th floor hotel rooms, common areas, and auxiliary rooms
6th floor hotel rooms, common areas, and auxiliary rooms

Amenities:

City electricity supply (low voltage, phase), water supply, gas, sewerage, telecommunications, heat supply. The land plot's undeveloped territory is well-maintained, 4200 m2 of asphalt/pavement, —500 m2 of lawn and greenery.

Building parameters

Cadaster No. 0100 0890154 005
Building area, m2 1337,6
Volume, m3 23 079
The total area of ​​the building premises, m2 6 943,1
including useful floor area, m2 6 653,9
Basement 983,9
1st floor 1 042,2
2nd floor 977,7
3rd floor 965,3
4th floor 989,1
5th floor 961,2
6th floor 1 023,7

Possible explication and value of apartment building premises

  The total area of ​​apartments after reconstruction of the building into an apartment building The common area after the reconstruction of the building into an apartment building The base value per 1m2 of the Etalon apartment in EUR The total value of apartment areas, EUR
Basement 0 983.9 - -
1st floor 741.9 300.3 1317 976 860
2nd floor 741.9 235.8 1455 1 079 465
3rd floor 756.2 209.1 1455 1 100 271
4th floor 735.6 235.3 1455 1 070 298
5th floor 731.9 229.3 1455 1 064 915
6th floor 743.7 265.7 1455 1 082 084
Total, m2 4451.2 2459.4 Total, EUR 6 373 893

LOCATION

The building is located in the Teika neighborhood. The neighborhood covers an area of almost 5 km2 and has about 30 thousand inhabitants. It has predominantly multi-storey residential buildings. The neighborhood includes all necessary services for convenient living.

From an urban planning view, Teika is a relatively new neighborhood. Teika is considered one of the greenest, friendliest neighborhoods in Riga and is a desirable place to live in, especially for families with children. Teika is one of those neighborhoods where most of the residents are satisfied with the quality of life.

Teika is one of Riga's more accessible neighborhoods, serving several buses, trolleys, and minibus lines. Within the neighborhood, you are always in close distance to public transport stop, and it takes 30 minutes to get to the city center by public transport; with a car, it can be done less than in 20 minutes. A public transport stop is 100 meters from the building.

DISTANCES:

• International Airport Riga -18 km (30 minutes driving distance)
• Riga Ferry terminal -16 km (30 minutes driving distance)
• Riga Train terminal - 6 km (20 minutes driving distance)
• Riga Bus terminal - 6 km (20 minutes driving distance)
• Riga Old Town -6 km (20 minutes driving distance)

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