#8958 Bullet loan - Totoriu sodas

Location
Vilnius, Lithuania
Asset Type
Residential
Collateral value
€6,014,000
Loan Issued
€3,945,000
Interest rate
9-13%
LTV
Up to 69%
Loan type
Bullet loan
Collateral type
First rank mortgage
Issue date
11/2021 – 05/2022
Tenor
12 months

Surety/Guarantee
Member of the board of the borrower provided a personal suretyship for the 100% of the mortgage amount.

9-13%

Interest rate

€6,014,000

Target

Up to 69%

LTV

Project Summary

Asset description

The collateral consists of a 2,945.02m². commercial building under construction that will be sold as 25 luxury apartments.

The location of the project is one of the central streets of the Old Town, which, unusually, is away from the main flows of people, which is particularly important for the residents of the capital who live a busy life. The biggest unique feature of the project is the private garden in your backyard.

The vegetation of the garden has been planned so that the residents will be delighted by the blossom from early spring to late autumn: apple trees, Sakura trees, bonsai, hydrangeas, green hedges.

The project uses A+ class materials, a heat recovery ventilation system, air-conditioning, lifts from the car park to all floors, and windows with increased sound insulation on the street side to ensure maximum comfort and peace of mind. In addition, all apartments have underfloor heating with separate heating zones, A+ class wooden windows and high class, armored doors with wood décor.

Purpose of the loan
The development loan was used to finance the development project. 

Background and business plan/Exit strategy

The borrower has successfully developed several real estate projects. Including an apartment building (www.cozy-life.lt) and several smaller developments of semi-detached homes including Voveriu namai (https://www.capital.lt/lt/voveres-namu-kvartalas-pj1187). 95% of sellable area is already pre-sold.

Once the development is finished, the apartment sales will be notarized and the loan will be repaid.

Financial analysis
Company was a small company with average financial results. The full project consists of 25 apartments.

The total planned revenue from the project is €8,385,000. 19 apartments are sold and 4 reserved.

Credit summary
Credit risk was at medium level: great location, short loan-term as well as personal guarantees, however it as a development project with high LTV ratio.

Investor Presentation

Read more about our three options to invest

Risk Mitigation

EG Capital’s advanced risk procedures safeguard investor funds

Interested? Let’s Talk

If you would like to learn more or discuss how our solutions can help your business grow, please reach out to our Capital Markets Associate or fill out the form and we will be in touch.

Martin Murruste
Senior Associate Capital Markets

   
Tartu mnt 10/Pääsukese 2, Tallinn, 10145, Estonia

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