More than 1,000 Finnish investors and 137 funded properties totalling €43 million – EstateGuru’s first year in figures
EstateGuru, an international fintech company and alternative financing expert, officially launched operations in Finland in October 2020. The year since launch has proved to be extremely successful for the company, as it has financed a large number of real estate projects for Finnish companies.
Investors have also been eager to take up the platform’s offering, with 1120 Finns joining since launch. These investors have earned an average return of 11.33% p.a. while, depending on the project, borrowers have received credit lines ranging from 7.5% to 13% p.a.
Through EstateGuru, a total of 137 construction projects have been financed in Finland, which amounts to a total of €43,388,581 in financing. Most of the projects have been implemented in the SME sector, but projects have also been financed for larger entities.
“To date, the largest project we have financed is the two commercial properties in Koskelo, Espoo, which have raised a total of approximately €3.2 million. In addition, we are running two-phased development projects of approximately €5 million in both Lahti and Helsinki. Furthermore, a development project of approximately €4.5 million is underway in a good location in Espoo, ”says Matti Vansén, Country Head of EstateGuru in Finland.
“The most typical EstateGuru financing project in Finland is one that seeks financing for the acquisition and renovation of an old property. An example of a project funded in Finland is, for example, an attic building project with an area of 800 square meters in Sörnäinen, Helsinki, in which additional floors will be built in an existing house for residential use, ”says Vansén.
Involved in modifying Finnish legislation
According to Vansén, the growth of EstateGuru over the past year is rapid but controlled. At the same time, crowdfunded real estate loans have increased their potential popularity in Europe and the uptake is constantly growing in Finland as well.
“Strong further growth is expected, and EstateGuru has ambitious targets in Finland. We will launch a revolutionary automated product for investors soon which will offer even easier portfolio diversification. We will also continue to grow our presence in the market and gain more visibility so that, hopefully, more companies start taking advantage of our product.“
EstateGuru has become a familiar company to policy-makers too because they have asked EstateGuru to give an opinion on the EU -level implementation of the pending crowdfunding regulation. After this, they also requested comments and opinions on supplementary regulation at a local level.
“It speaks volumes about our position in the market and the level of trust in our business that we are being asked to take part in the broader formation of policy in Finland, albeit only on an advisory level,” says Vansén.