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Vormsates castle | Round 3
100% Funded

100%
Need: €0.00
Interest rate: 26%
Period: 8 months
Funded
Target: €62 919
Opens: 2021/09/14
Expires: 2021/10/14
Type: Real Estate
Location: Latvia
Investments: 392

SUMMARY

Current investment opportunity offers CROWDESTOR investors to make a loan with a 26 % annual interest rate for the period of 8 months. 
The maximum target is EUR 75 000,00. 

The Vormsates castle complex is surrounded by the largest, oldest, and most scenic ash park in the Baltic States, but the territory is crossed by the Kurzeme’s fastest river Skērvelis (also known as Nīkrāce and Skērdule). The castle complex also includes a sauna building on the bank of the river, fishponds, and land with a total area of 20.37 hectares. 
The palace, with a total area of 1,600 square meters, was built in 1568, but in the 18th century, the architect to whom it belonged reconstructed the building. It was burned in 1905 and later restored, preserving the building's original appearance to the maximum. 
 

LOAN

Target: 75 000 EUR  
Loan term: 8 months
Interest rate: 26%  p.a.
Repayment:

The interest and the loan principal are paid in a bullet payment at the end of the Loan term.

Security:

The loan is secured by a guarantee of the borrower company and pledges on real estate (cadastral numbers 6268 006 0177 and 6268 006 0180). 

Location: Latvia

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

ABOUT VORMSTATES CASTLE

 
Vormsates Castle is located in one of the most beautiful and greenest parts of Kurzeme and is surrounded by a huge ash park that has experienced countless historical events. It is recognized as the largest and oldest ash park in the Baltics and is registered in several parks and gardens catalogs. 
       
The palace, with a total area of 1,600 square meters, was built in 1568, but in the 18th century, the architect to whom it belonged reconstructed the building. It was burned in 1905 and later restored, preserving the building's original appearance to the maximum. 
There was once a winery with a cellar and a drinking fountain in the very heart of Vormsates Castle. And interestingly, according to the historical archives of the castle, it used to belong to famous Baltic Germans. 
 

LOCATION CHARACTERISTICS

  
The object to be evaluated is located in Skrunda municipality, in Nīkrāce parish, 1 km before Nikrāce, on the right side of the road, on the left bank of Skērvelis. Built in 1809, it is also known as the Diždzelda or Lieldzelda Castle, is an architectural monument of local importance. Below the Vormsates Shoreline, there is the Šķēveļa Boulder and Vormsate mound. 
Skrunda and Skrunda rural area covers an area of ~ 266 km2 and has 3,698 inhabitants (01.01.2010 according to IR) 
In 1950, Skrunda was granted the rights of a town village. From 1950 to 1959, Skrunda was the center of the district. In 1969, the VEF workshop was built in Skrunda. During Soviet times, Aizpute peat factory district, geological and hydrogeological expedition, PMK district, household service workshops, fishery '' Skrunda '', wood processing plant "Vulkans" reloading base was operating. Skrunda is the newest city in Latvia and was granted city rights in 1996. 
The area of Nīkrace parish is ~ 134 km2; it has 750 inhabitants (as of 01.01.2010, according to IR data). Nīkrāce parish is located in the southern part of the Skrunda district. The parish is bordered by Skrunda town, Pampāļi parish, Kalvene parish, Kazdanga parish, Rudbazi parish, Embute parish, and Nīgrande parish. 
The territory of Nīkrāces parish in the north-western direction is crossed by the state first-class road P 116 Kuldīga – Skrunda - Embute, which has black asphalt pavement. Part A - State second-class motorway P 1277. The distance from the center of the parish to Kuldīga - 54 km, to Liepāja - 86 km, to Riga - 165 km. 
  
Nīkrāces parish is an ancient settlement with an interesting history. Until 1920 Nīkrāce parish was called Briņķi parish. The first records of the area date back to 1253, when the documents refer to Zelde. In the 19th century, there were several small parishes in the area. In 1920 Briņķi parish was renamed to Nīkrāces parish. 
The infrastructure at this site is considered to be moderately developed. Surrounding buildings - farmsteads, agricultural and forest lands. The area is not fenced; there is no entrance gate, no pavement access. 
Public transport - moderately developed, buses and minibusses run on local roads. Shops and similar buildings are located 1 km from the property, in the central part of Nīkrāce. The location of the estate is quite good. 
 

LAND PLOT AND CHARACTERISTICS 


Real estate with cadastral no. 6268 006 0005. 
According to the land management project and the SLS Cadastre data, the land area after separation is 118 000 sq.m. In the Cadastre data of the SLS, the land is registered with the cadastral number 6268 006 0177. 
 
Living House - Manor House (cad.des. 001) 
Year of construction and commissioning: 1809 
Building area – 849.7 sq.m. 
Number of floors overground – 3 
Number of floors underground – 1 
Building field – 419.10 sq.m. 
Building volume – 4132 sq.m. 
Building foundation – boulder 
External walls – boulder 
Ceiling – timber 
Roof covering - concrete tile 
Windows and doors – wooden 
Communication – power supply and local furnace heating, local water supply – well 
  

BUILDING CONDITIONS


 
The building is not in operation. Renovation work has been started on the premises of the building; they are ready for renovation. Some of the rooms have a "white finish" - installed plasterboard walls and angled floor-ready flooring. The area is without any special amenities. 
Auxiliary buildings included in the object: barn (cad.des. 002, a total area of the building - 36.6 sq.m.); shed (cad.des. 003, the total area of the building - 42.9 sq.m.); barn (cad.des. 004, the total area of the building - 62.8 sq.m., the building does not exist in nature, dismantled); household building (cad.des. 005, the total area of the building - 199.5 sq.m.); shed (cad.des. 006, the total area of the building - 44.7 sq.m.) is in poor technical condition. The auxiliary building is not included in the facility's total area but is a positive factor due to the possible additional construction volume in the future. 
  
Real estate with cadastral no. 6268 006 0027. 
  
According to the land management project and SLS Cadastre data, a land plot of 85,700 sq.m. will be added to the real estate (cad.des. 6268 006 0005). area (cad.des. 6268 006 0180) with buildings on it (residential building with cad.des. 001; outbuilding with cad.des. 002 and barn with cad.des. 003). 
 
Description of the building 
  
Living House - Manor House (cad.des. 001) 
Year of construction and commissioning: 1890 
Building area – 192.7 sq.m. 
Number of floors overground – 1 
Number of floors underground – 1 
Building field – 221.60 sq.m. 
Building volume – 792 sq.m. 
Building foundation – boulder 
External walls – boulder 
Ceiling – timber 
Roof covering - asbestos cement sheets 
Windows and doors – wooden 
Communication – power supply and local furnace heating, local water supply – well 
  
Building condition 
The building is not in operation. Auxiliary buildings included in the object: household building (cad.des. 002, the total area of the building – 166.1 sq.m.); barn (cad.des. 003, the total area of the building – 74.5 sq.m.) The auxiliary building is not included in the facility's total area but is a positive factor due to the possible additional construction volume in the future. 
 

ABOUT THE OBJECT

 

The best and most efficient use is the use of the asset to the maximum, which is realistic, legal, and financially viable. The best and most effective disposal may be the current use of the asset, or there may be another alternative use. 
The best and most effective uses include the following considerations: 
(a) In order to determine whether a use is reasonably practicable, account shall be taken only of the considerations which operators consider reasonable, 
(b) any existing legal restrictions on the use of the property, such as zoning, must be taken into account to reflect the requirement that the use be lawful; 
(c) the requirement that the use must be financially feasible involves assessing whether there is an alternative, physically feasible, and legally permissible use which, taking into account the costs associated with a change of ownership, would provide the typical marketer with a level of profitability of the property at current use. 
Considering that:

  1. given the permitted use of the land at this site, the object is located in a landscaped agricultural area and agricultural usable area;
  2. surrounding buildings (vacant land, farmsteads, forest land)
  3. the existing building (in single-family residential building - manor house with auxiliary buildings);
  4. a market situation that financially justifies and justifies the usefulness and adequacy of existing construction;
  5. current use of the building (manor house under reconstruction)


It can be concluded that the best use of the object is the reconstruction of the manor and its use as a single-family residential building or guest house. 
 

Real estate market characteristics

Interest in historic properties - palaces or estates - has recovered compared to years of crisis, but the number of transactions in this segment is insignificant. Real estate companies show that foreigners are mostly interested in historical objects - from Western Europe, Scandinavia, and from Russia. 
According to information from the Latvian Association of Castles and Manors, the activity in this segment has increased during the last year. Castles, manors are sought not only for business but also as a residence place. From time to time, the association has correspondence with brokerage firms or direct interested persons looking for opportunities to purchase a historic property in Latvia. However, the market is small, and there is no information that there have been any significant transactions in this segment lately. 
According to the LPMA, there are currently about 1400 castles and manors in Latvia, many of which have been preserved by ruins or only by name. Stable, interested owners could own only a few hundred properties, and even fewer have restored castles and estates that have been restored and tidy. This includes historical properties that are often in poor, often collapsed, condition, but not always the poor technical condition of the building automatically translates into a low price - the value of the property in this segment is determined by its age, history, reputable relatives and location. At the moment, there are several Latvian castles or manors in search of owners, and the value of such properties on the market can reach several hundred thousand euros. 
The historical heritage of the castle or manor is important to potential buyers; it is important for them to know who has lived there and other historical nuances. An important argument in favor of a historic property is its location - landscape, terrain, the presence of trees, and water. It is very important that the manor is kept private and there are no other buildings in the vicinity which significantly reduces the chances of the successful sale of the property. If the palace or manor complex is located in the center of the parish, or worse, there are Soviet-era high-rise buildings or other buildings that degrade the environment, it will be difficult to find a buyer. Historical property is sold within one and a half to three years. In addition, the sale price of a castle or manor is often the smallest part of the investment, and the cost of renovating properties is often up to three times higher. 
Currently, the average selling price of similar properties ranges from EUR 500000 - 1500000, depending on location, architecture and materials used, land area, amenities, condition space of the premises, and other factors. 
 

MARKET VALUE   

The market value of an object is positively and negatively influenced by several factors taken into account in determining the object's market value. 
Positive factors influencing the market value of the object:

  1. location in the Nīkrāces parish
  2. plot area
  3. manor technical condition - renovation works started
  4. communications – electricity


Negative factors influencing the market value of the object:

  1. technical condition of the building
  2. market situation, low demand for this type of property
  3. easement path


To use market access, you first need to know the maximum similar objects that have just been sold or are on offer. The appraiser also needs to check this information at its best to avoid any inaccuracies in the appraisal. The valuers should compare the object being assessed and the comparative objects according to various factors affecting value in the subsequent valuation process. 
The Valuer is aware of several sales of similar properties or the facts of their location in the offer. Three similar properties for sale or for sale have been selected for comparison. 
1. Talsi district, Balgale parish, "Pilsdārznieki," the manor house with a similar location, building - in slightly better technical condition than the object to be observed, reconstruction works were completed at the moment of the transaction. Building area - 1056.6 sq.m., land area 10 600 sq.m. Territory with better amenities. Amenities - similar. The technical state of the building is similar because the building was built in 1825, the structural elements are similar to the comparable object, the state of interior decoration is better compared to the comparable object. Sold in February 2012 for € 960,000. 
 
2. Real estate "Lāņu muiža," consisting of 9,787 hectares of land, school building (754.9 sq.m.) with basement and annexes, dwelling house with annex (471.1 sq.m.) and outbuilding, basement, and shed. The manor house was built 130 years ago. Until 1940 the owner was Baron Reinhard von Fegezak. It was called a hunting castle because gentlemen from Germany, Italy, and France were hunting. Hunting balls were often held in the castle. The location is rated better than the main object. At the time of sale, the manor complex had not begun reconstruction work. Sold in September 2007 for EUR 1 437 108. 
 
3. Neretas region, Neretas parish, Nereta Manor, with a similar location, in worse technical condition than the main object. Building area - 545 sq.m., land area 140 000 sq.m. The manor building complex consists of an old manor house built in the 16th century and a 14 ha park with pond cascades and linden alleys. The manor is located 5 km from Nereta, on the very border of Latvia and Lithuania, and is a cultural monument of national importance. Territory improvement - similar. Amenities - similar. The premises are in a worse technical condition, the technical condition of the building is worse, reconstruction works are needed, constructional materials are similar. Available for 557 145 EUR. 
 

 

 

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