The entire loan was repaid to investors ahead of time when a bank refinanced the project. “The construction progressed at a very good pace, the building was completed, and the first apartments have already been handed over to buyers. Therefore, the development reached a logical point where the developer refinanced it with a commercial bank,” explained Estateguru CEO Mihkel Stamm, who added that a similar model of successful cooperation has been carried out with Endover in the Klaussoni Kommivabrik and Rocca Tower developments.
A total of 6,778 Estateguru investors participated in the financing of Volta Villa, with the largest investment placed in the project being 500,000 euros and the smallest 50 euros. The financing of Volta Villa began on the Estateguru platform in December 2023, and the project was financed in 13 rounds, raising a total of 4.2 million euros, with an annual return on investment of 10.8%.
According to Stamm, this is a widely used scenario, where crowdfunding provides early-stage bridge financing to developers, including large and well-known developers, until a bank is ready to take over the project’s financing. “It’s a model that has proven itself very well over the past ten years. I believe that in this particular case, Endover and its clients, Estateguru and our investors, as well as the bank that has now taken over the financing, are all satisfied,” said Mihkel Stamm.
