EstateGuru is financing its first project in Germany 06/03/2020

EstateGuru has just approved and published the first German project on its platform.

“This is one of the most important milestones we have achieved to date as Germany is the biggest market with the most potential for EstateGuru to expand its operations. Although the biggest investor pool – 11 000 out of 45 000 – already comes from Germany, EstateGuru hasn’t financed any projects in this lucrative real estate market until now. We want to become the leading ecosystem in the alternative lending market for small and medium-sized companies across Europe. EstateGuru now provides fast and flexible lending solutions to its borrowers in seven countries. In addition to the Baltics, we are active in Finland, Spain, Portugal, and now also in Germany”, commented Marek Pärtel, Co-Founder & CEO of EstateGuru.

Germany is the world’s third-largest exporter, the Eurozone’s largest economy and currently has one of the lowest unemployment rates in the world. As such it represents a great opportunity for EstateGuru’s business model and the logical next step in the company’s pan-European expansion plans.

“This move is part of our tested and proven expansion model. We are close to finalising all the preparatory work in order to establish our local subsidiary and operations in Germany. Our aim is to be fully compliant with regulations for running local daily business operations in the country. We will appoint a Country Head during the next two weeks and we will be ready for a full launch in the upcoming months”, added Pärtel.

The first German project is in Sindelfingen, which is close to Stuttgart. Sindelfingen is the largest city in the rural district of Böblingen. The borrower is an Estonian company called EK KV SPV3 OÜ. While this is the first loan offered in Germany, the borrower has taken a loan from EstateGuru before. The previous loan was issued in April 2019 to finance the purchase of a printing factory in Finland. The borrower has experience in developing several retail centres and managing different commercial real estate. He also has more than a decade of experience in M&A and restructuring in the Baltics and Scandinavia. Representative of the borrower owns, along with EK KV OÜ group, a 27,000 sqm industrial property in Mikkeli, Finland and, with the EK Invest OÜ holding company, two printing factories in Germany.

The German industrial and logistics real estate markets were stable in 2019 despite the volatility in industrial production. Total investment volumes were over €6,5 billion, which was comparable to 2018. The German industrial and logistics market is currently defined by a scarcity of supply and, consequently, the volumes could be even higher. Over 60% of buyers are non-domestic, which makes the demand healthy. The industrial and logistics market comprises over 10% of Germany’s commercial real estate market and there are no signs of a decrease in this number. Stuttgart, with its 635 thousand citizens and an unemployment rate below 4%, offers a healthy demand for industrial and logistics properties. In conclusion, as the financial markets and therefore the investment market continues to enjoy favourable overall conditions, we expect the industrial and logistics real estate market in Germany to remain stable