#ES22-422 Development loan

Location
Murcia, Spain
Collateral value
€3,507,122
Target
€1,700,000
Period
18 months
Interest rate
12%
LTV
48%
Loan type
Bullet loan
Collateral type
First rank mortgage
Issue date
10/04/2022
Tenor
18 months

Surety/Guarantee
The current sole administrative of the company and member of the board of the borrower will provide a personal suretyship for the 100% of the mortgage amount.

12%

Interest rate

€1,700,000

Target

48%

LTV

Project Summary

Asset description
Residential land plot where the borrower is building an apartment building of 27 apartments, plus parking area and storage rooms. The borrower has sign pre-sales agreement for 21 of the 27 apartments, 4 are blocked and 2 more remains without potential buyer-

The asset is located in the development area of the city of Murci, 5 min walking to the main city center.
the building will have a common swimming pool. The construction partner will be Porcelanosa.

Purpose of the loan
The loan will be used to finance the project purchasing and to finance the already granted construction license cost.

Background and business plan/Exit strategy
This borrower company was born 2013 after more than 10 years of the founder as Real Estate professional and 4 years as commercial director on several developing companies. This company is currently developing several projects in Alicante and Murcia provinces.

Financial analysis
The borrower Company is a Limited Liability company founded 2013. The current company revenue is €30,000.

Credit summary
Credit risk was at low-medium level: low LTV, existing cash flow object, experience of the borrower, secondary city, asset type risk low.

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

Contact Us