We are introducing a new investment product – EG Grow – in which funds are diversified across property-backed loans, secured not only by tangible buildings or land but also by a dedicated contingency reserve created specifically for this product. This reserve ensures that monthly interest payments are maintained even if a borrower experiences a short delay.
According to Estateguru CEO Mihkel Stamm, the recent corporate bond boom shows that investors are increasingly seeking returns that outperform inflation. “In an environment where bank deposit interest rates have dropped to around 2–3%, and annual inflation often hovers near 5%, investors are actively looking for alternatives to grow or preserve their capital,” Stamm explains. “Corporate bonds have become popular due to their yields, but they are often only partially secured. We see a growing number of people in Estonia who are looking for more confidence and a smoother investment experience.”
The decision to launch this product now is supported by rising activity across the Baltic real estate markets. “While Estonia is just beginning to regain momentum, activity in Latvia and Lithuania is already significantly higher. This means more real estate projects are emerging, and they need financing,” says Stamm. “With EG Grow, investors entrust us with their capital, and we manage the investments on their behalf, offering a 7% annual return with monthly interest payouts. We lend to selected real estate developers who pay interest monthly and repay the principal at the end of the loan term. The loans are backed by real, tangible properties and, additionally, Estateguru’s own risk mitigation reserve – created specifically for EG Grow – ensures monthly interest payments even if a loan is temporarily delayed.”
As Stamm puts it, it’s a simple and secure way to gain exposure to real estate without having to purchase property yourself and potentially earn up to three times more than from a typical bank deposit.
We see EG Grow as a product that bridges the gap between low-yield deposits and higher-risk investment instruments. It is the first product of its kind in Estonia. If successful, we plan to expand its offering to other Baltic markets and, eventually, to Central European countries.
Find more on EG Grow here!
