This key investment information sheet (KIIS) has been put together for the individual portfolio management service offered by Estateguru (the EG Grow). This KIIS has been neither verified nor approved by the Estonian Financial Supervision and Resolution Authority (Finantsinspektsioon) or the European Securities and Markets Authority (ESMA).
The appropriateness of your experience and knowledge have not necessarily been assessed before you were granted access to EG Grow.
By making the investment decision, you assume the full risk related to this investment, including the risk of partial or entire loss of the money invested. Please see our Investor Risk Statement for more information on the risks involved in investing on the Estateguru platform.
Responsibility for the information provided in this key investment information sheet
The crowdfunding service provider declares that, to the best of its knowledge, no information has been omitted or is materially misleading or inaccurate. The crowdfunding service provider is responsible for the preparation of this key investment information sheet.
Crowdfunding service provider: Estateguru OÜ
Registered office: Liivalaia str 36, 10132 Tallinn, Estonia.
Fees, information and legal redress
| (a) | Fees and costs incurred by the investor relating to the investment (including administrative costs resulting from the sale of admitted instruments for crowdfunding purposes) This Section contains the direct and indirect fees, commissions, costs and charges incurred by the investor in relation to their investment. Where euro (or other applicable currency) amounts and percentage values are stated, they are calculated for a hypothetical investment of EUR 10,000 and on an annual basis. | ||||
| Fees, Charges and other Costs | in euros (or other applicable currency) | as percentage of total investment amount | Examples (non-exhaustive) | ||
| One-off | Interest difference | Up to 1000 EUR | Up to 10% | The difference of the interest paid by the project owner and received by the investor. In case of EG Grow, investors receive up to 7% on annual basis regardless of the project. The interest difference is withheld by the portal operator before the interest payment is transferred to investor’s virtual account. The interest difference is contributed to the EG Grow contingency fund. | |
|---|---|---|---|---|---|
| Incidental | Default interest | Up to 3200 EUR | Up to 32% | This is applicable only in case the borrower is in default and is obliged to pay default interest. In such a case the portal operator is entitled to withhold the default interest which exceeds 7% return on annual basis (in aggregate) as a contribution EG Grow contingency fund. | |
| Penalties, costs, damages and fees paid by the borrower | Specific amount not specifiable before the actual events occur | Percentage not specifiable before the actual events occur | This is applicable only in case the borrower is in default. In such a case the portal operator is entitled to withhold all penalties, costs, damages and fees paid by the borrower as a contribution to EG Grow contingency fund. | ||
| (b) | Where and how additional information about the crowdfunding project and the project owner can be obtained free of charge Estateguru shall provide You access to the information on Your EG Grow portfolio on a continuous basis through the portal or through Estateguru’s customer support. To receive information on the loans in Your EG Grow portfolio, you should make an inquiry to info@estateguru.co. | ||||
| (c) | How and to whom the investor may address a complaint about the investment or about the conduct of the project owner or the crowdfunding service provider If you want to file a complaint about the investment or about the conduct of the project owner or Estateguru OÜ, you can do so by sending an e-mail with your complaint to info@estateguru.co or filling in a complaint form accessible here. If you decide to file your complaint using the form, please make sure to enter all of the required information. When sending us an email, please provide at least the description of the subject-matter, reference to the project the complaint is related to (if applicable), description of the damage, loss, or detriment caused, your user ID and contact details. Complaints may also be sent to us by post. The contact information for that purpose can be found here. | ||||
Part I: Information on individual portfolio management of loans to be provided by crowdfunding service providers
| (a) | Identity, legal form, ownership, management and contact details of the crowdfunding service provider | ||||
| Identity | Estateguru OÜ Country of incorporation: Republic of Estonia Registry code 12558919 | ||||
Legal form | Private limited company | ||||
Ownership | Estateguru OÜ is in the sole ownership of Estateguru Holding OÜ (a company incorporated under the laws of the Republic of Estonia, registered under registry code 12621285). Estateguru Holding OÜ is a holding company and the parent company of the Estateguru group. | ||||
Management | The management board has three members: Chief Executive Officer Mihkel Stamm, Chief Financial Officer Marko Arro and Chief Risk Officer Andres Luts. You may find more information about the management and management board and widened management here. | ||||
Contact details | registered address: Liivalaia street 36, Tallinn 10132, Estonia email: info@estateguru.co | ||||
| (b) | The minimum and maximum interest rate of loans that may be available to investors’ individual portfolios Actual range applicable to an investor depends on what has been selected by the investor for their individual portfolio of loans, however, in case of using EG Grow, the interest rate actually payable to the investor is capped at 7% per annum as any return exceeding this rate is contributed to the EG Grow contingency fund. The selection can be made within the following overall range: Minimum interest rate: 8% per annum. No maximum interest rate determined. | ||||
| (c) | The minimum and maximum maturity date of loans that may be available to investors’ individual portfolios Actual range applicable to an investor depends on what has been selected by the investor for their individual portfolio of loans. The selection can be made within the following overall range: Minimum maturity date: 6 months Maximum maturity date: 18 months | ||||
| (d) | Where used, the range and distribution of risk categories that loans fall into, as well as the default rates and a weighted average interest rate per risk category with a further break down by the year in which the loans were granted through the crowdfunding service provider In the case of the Estateguru platform EG Grow service, not used and therefore not applicable as a basis for determining the criteria for individual portfolio of loans. | ||||
| (e) | The key elements of the internal methodology for credit risk assessment of the individual crowdfunding projects and for defining the risk categories Credit risk is defined by two main components: project owner’s repayment capacity (the ability of project owner to fulfil debt obligations) and the recovery position of a project in case a project owner is not able to meet their debt obligation (mainly depends on collaterals and covenants, credit structure, and type of loan). Financial risk is analysed based on, where available, audited accounts covering the two latest financial years of the project owner (or if the project owner is part of a group, then consolidated financials as well), including revenue and costs, balance sheet structure, liquidity and debt coverage. You can find more information about the credit risk assessment and risk categories here. | ||||
| (f) | If a target rate of return on investment is offered, an annualised target rate and the confidence interval of this annualised target rate over the investment period, taking into account fees and default rates In the case of the Estateguru platform EG Grow service, the target rate of return on all investments is 7% and therefore the annualised target rate for all EG Grow investors’ portfolio of loans is also 7%. | ||||
| (g) | Procedures, internal methodologies and criteria for selection of the crowdfunding projects to the individual portfolio of loans for the investor Loans are selected to the investor’s portfolio solely based on the criteria determined for EG Grow portfolio management service and approved by the investor and the amount of funds the investor has allocated for the service. EG Grow loan parameters can be seen by the investor on investor’s EG Grow page. When a new loan project is published on the platform, the loan is compared against the EG Grow loan parameters on all accounts with activated EG Grow and approved investments per loan are deducted from investors who have approved EG Grow loan parameters which match the terms of the newly published loan. If the aggregate amount of investments available from investors using EG Grow exceed the available maximum loan amount the project owner has applied for, investments from investors with activated EG Grow are collected based on randomization rules that apply to Auto Invest function explained in the User Terms. | ||||
| (h) | Coverage and conditions of any applicable capital guarantees No capital guarantees applicable. | ||||
| (i) | The servicing of portfolio loans, including in situations where a project owner does not meet its obligations All portfolio loans allocated to your EG Grow portfolio are serviced in the same way as all other loans on the platform. The crowdfunding service provider is authorised to act on behalf of the investors who have granted a loan to a project owner. If a project owner does not meet its obligations, the crowdfunding service provider has in place debt collection procedures for actions which are taken against the project owner. The work-out plan starts with negotiations and, where it is evident that the project owner is not able to repay the loan or find refinancing solutions outside of the platform, continues with the realisation of collateral securing the loan in default. Proceedings for enforcement of collateral take time. Depending on the laws applicable to the collateral (the laws of the country where the collateral is situated), (i) there may be a requirement of a prior notice of 1-6 months after the default before the enforcement proceedings towards the collateral can be initiated; (ii) enforcement of the collateral may require a prior authorisation from the court or a notary, (iii) debtor or the collateral provider may attempt to submit counterclaims against the enforcement proceedings which further prolong the process, (iv) one or several unsuccessful sale(s) via auction in the course of enforcement proceedings may eventually lead to a sale with a price lower than the total claim of the investors (incl. principal, accrued interest and other fees and amounts payable as a result of the default). Considering the above, enforcement proceedings of a loan in default may in a worst case scenario take years even in case the loan is secured by collateral. Therefore, where possible, the crowdfunding service provider negotiates with project owners to find out-of-court solutions for solving the default case in parallel with the official proceedings. The crowdfunding service provider operates a contingency fund for paying up to 7% annual return on loan contracts concluded via EG Grow, to the extent there are available funds in the contingency fund. No principal loan payments will be covered from the contingency fund. The crowdfunding service provider does not guarantee that there are any funds in the contingency fund to make payments to investors. | ||||
| (j) | Risk diversification strategies The crowdfunding service provider does not consider the risk level of the individual portfolio of loans of an individual investor using EG Grow when allocating loans to their portfolio. | ||||
| (k) | Fees to be paid by the project owner or the investor, including any deduction from the interest to be paid by the project owner Fees to be paid by the investor to the crowdfunding service provider are determined on the first page of this Key Investment Information Sheet under “Fees, information and legal redress”. Fees to be paid by the project owner:
There are also incidental fees which the project owner may need to cover to the crowdfunding service provider or investors if the project owner fails to duly fulfil its obligations deriving from the contractual relationship with the crowdfunding service provider and the investor, e.g. when the project owner fails to establish an insurance policy to secure the real estate encumbered by a mortgage, is late with any payments, applies for loan period prolongation, or has defaulted. All these incidental fees are listed in the Price List. | ||||
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