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Apartment building - Vitrupes Street 1 | Round 03 | Round 3
100% Funded

100%
Need:0.00€
Interest rate:22%
Period:12 months
Target: 16 396€
Opens: 2021/06/09
Expires: 2021/07/09
Type: Real Estate
Location: Latvia
Investments: 191

SUMMARY

CROWDESTOR would like to announce a new investment opportunity in the low-rise small and medium-size apartment building development - Apartment building - Vitrupes Street 1 | Round 03.

Current investment opportunity offers CROWDESTOR investors to make a loan with a 22% annual interest rate. The target to be raised in this fundraising phase is 28 000 EUR.

The loan is secured with a first-hand pledge on real estate.

The Borrower plans to refinance the project and pay back the loan to CROWDESTOR investors once half of the renovation works have been carried out, reducing the interest rate to a one-digit number in local real estate funding companies or specialized real estate crowdfunding platforms. 

LOAN

Borrower: SIA “AMATUM”,  registration number 40203247830
Maximum target: 28 000 EUR
Loan period: 12 months
Interest rate: 22% p.a.
CROWDESTOR provision fund: Yes
Repayment: Interest and principal in full at the end of the Loan Term
Collateral: The loan is secured by the first-hand pledge on real estate in Riga, Vitrupes Street 1
Location: Latvia

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

Market Opportunity

According to the latest global real estate trend, many queuing up for small/medium-sized but perfectly formed living space apartments (20 m² - 30 m²) in well-developed infrastructure areas.

Project in Vitrupes Street 1 will be developed based on these trends.  The funds will be used to purchase and reconstruct a low-rise building with a total area of 480.2m²; after reconstruction, the building will have 21 apartments and 21 storage rooms (4m²-5m²) located on the basement floor.  The total area of the building will be extended to 733.7 m².  District - Jaunmilgravis located 12km from the city center. 

Total funds necessary - 352 400 EUR. Valuation once the object is renovated - 590 000 EUR ensuring an FLTV of 60%. This is the first stage of fundraising. Further funds will be collected once/twice a month from December 2020 till June 2021. 

 

PROJECT

In late years there has been a significant increase in demand for apartments with a smaller floor area, fewer rooms, and a more rational layout (eliminating and reducing inefficient spaces).  Analyzing the real estate market situation in the renovated houses in the Jaunmilgravis districts of Riga, in the segment of 1-room apartments, real estate appraisal concludes that the supply of similar apartments balances the demand. 

The funds will be used to purchase and reconstruct a low-rise building with a total area of 480.2m²; after reconstruction, the building will have 21 apartments and 21 storage rooms (3m²-5m²) located in the basement floor.  The total area of the building will be extended to 733.7 m². The building is expected to be commissioned by the end of 2021, and apartments will be put for sale. 

The layout of the building, the premises, and the materials will follow modern requirements. The technical condition of the building is generally excellent. The interior of the building will meet modern requirements. The required amounts depending on the fully finished area for 1-room apartments are from 1200 EUR/m² to 1500 EUR/m².

The property is free of the following encumbrances: lease agreements, mortgages, pledge marks, debts, or other encumbrances that affect extinguishing property rights.

The building's total area: 480.2 m²
The building's total area after reconstruction: 733.7 m²
Saleable (apartments) area:  464 m² 
Storage area:  108.5 m²
The Land plot total area 1 202 m²
Cadaster No. of the building 0100 0680 3100 01
Cadaster No. of the land plot 0100 0680 310

The real estate under assessment is located in the Jaunmilgravis district of Riga. It is about 12 km or 25 minutes from the Riga city center (Riga Central Station) car ride. Public transport to Riga city center and other districts is provided by bus, minibus, and tram routes. The nearest bus and minibus stop is on Viestura Avenue. The nearest tram stop is next to Ezera Street. To the nearest railway station, "Mangaļi" is about 200 m. In general, the location of the evaluation object in Riga's city is considered good; there is a railroad nearby which means more noises but outstanding flexibility. 

The assessors assume that high-quality materials will be used in the construction works. The works will be performed following the submitted floor plans, visualization documentation, and approximate costs with the necessary construction and reconstruction works. Construction works will be performed following the project agreed in Latvian legislation. The apartments will be divided into apartment properties with their cadastral number of the supposed part of the apartment house and land. The building will be reconstructed following technological requirements and in good quality.

The building will be used as a low-rise apartment building for the sale of apartments.

The layout of the building, the premises, the materials used are following modern requirements. The technical condition of the building is generally excellent.

Location

The object is located in Jaunmilgravis -12 km from the Riga city center.  Good public transport infrastructure - tram, bus, and minibus networks.  

  • Bus/tram stop: <500m
  • Railway station: <200m 
  • Forest Park: 350m
  • Lake: 15 min walk
  • Golf Club OZO: 15 min walk
  • Seaside: 10 min by train

FINANCIALS

Total investments 352 400 EUR   
Funds raised in a fundraising Round 01 62 000 EUR  
Funds raised in a fundraising Round 02 42 670 EUR  
Funds raised in a fundraising Round 03 28 000 EUR  
Funds raised in a fundraising Round 04 65 800 EUR  
Funds raised in a fundraising Round 05 76 965 EUR  
Funds raised in a fundraising Round 06 76 965 EUR  
Valuation once the project is finished 590 000 EUR  
FLTV 60%  
 
 

Useful area, m²

Sharing area of ​​premises, m²

The total area, m²

Price, EUR/m²

Total estimated revenue without VAT, EUR

Basement - 21 (5 m²) storage room 

108.57 75.18 183.75

300

32 571

1st floor

155.00 28.78 183.78

1 370

212 350

2nd floor

152.94 31.01 183.95

1 370

209 528

3rd floor

156.18 26.01 182.19

1 370

213 967

TOTAL:

572.69 160.98 733.67

 

668 415
 
Floor Unit type m2 Target sales price
-1 storage (21 unit) 108.57                         32,571
1 apartment 22.95                         31,442
1 apartment 19.36                         26,523
1 apartment 22.95                         31,442
1 apartment 19.77                         27,085
1 apartment 22.94                         31,428
1 apartment 24.08                         32,990
2 apartment 22.95                         31,442
2 apartment 22.95                         31,442
2 apartment 19.36                         26,523
2 apartment 22.95                         31,442
2 apartment 19.77                         27,085
2 apartment 22.94                         31,428
2 apartment 22.95                         31,442
2 apartment 22.02                         30,167
3 apartment 22.95                         31,442
3 apartment 22.95                         31,442
3 apartment 22.60                         30,962
3 apartment 19.77                         27,085
3 apartment 22.94                         31,428
3 apartment 22.95                         31,442
3 apartment 22.02                         30,167
    572.69 m2              EUR  668,415

 

Basement plan - 21 (5 m²) storage room 1st-floor plan
2nd-floor plan 3rd-floor plan

 

In annex: 

  • Valuation report

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