Pargi bridge loan - 9.stage Funded: 09.11.2018
- The loan is used to continue with construction works.
- The loan will be repaid from sales revenue of a completed development project.
- The loan is secured with a first rank mortgage.
- Member of the management board of the borrower will provide a personal surety in the full mortgage amount.
- The loan collateral building is a former public sauna building built at the time of Tsar and closed in 1995. According to the issued design conditions from the city council of Tartu, it is allowed to reconstruct the existing building into an apartment building with commercial premises. The design project is designed so that the existing building will be renovated and a new part of the building volume will be built to the undeveloped land, located behind the existing building, which is connected to the existing building through an underground parking floor.
- The construction of the main building is 90% completed as of today.
- 50 % of the apartments have been sold
- The property is located in the heart of Tartu City, in a green area, a region of older residential buildings. Nearby is also a park and number of commercial and social buildings.
- According to the construction project, 43 apartments and guest apartments in addition to 3 office premises are planned to be built with a total net area of ca 2400m2.
- The total cost of the construction project is around €1.8 million and the majority of the capital will be financed from borrowers' own resources.
- The loan applicant has long-term experience in real estate development in the centre of Tartu. The developer has been operating in Tartu since 2003, has built about 10 000 m2 of the residential real estate and built homes to about 300 people.
- The borrower has previously raised capital through EstateGuru platform, which has been already fully repaid (principal amount of €300 000) with accumulated interest (€16 174) and all the interest payments have been done in due time. In addition, the borrower has also partially repaid the principal amount for the current loan in addition to accumulated interest
Tartu is the second largest city of Estonia, following Estonia's political and financial capital Tallinn. Tartu is often considered the intellectual centre of the country, especially since it is home to the nation's oldest and most renowned university, the University of Tartu. The city also houses the Supreme Court of Estonia and the Ministry of Education and Research. Situated 186 kilometres (116 miles) southeast of Tallinn and 245 kilometres (152 miles) northwest of Riga, Tartu lies on the Emajõgi ("Mother river"), which connects the two largest lakes of Estonia. The city is served by Tartu Airport.
|Loan Contract Number|
Collateral value €1,900,000
Projected LTV 68.0%
Loan Period 12 months
Schedule Type Bullet
Mortgage Rank first rank
Mortgage Type Residential - Apartments
Loan Type Bridge loan