- The developer has already acquired the Corner Hotel, which has already started to be renovated.
- Strong demand: 14 sales contracts have already been signed within a month of sales in early April, indicating strong and rapid interest in the project.
- The project is being developed in an attractive location in Naujamiestis: The area is a popular place to live, work and spend leisure time. The Old Town of Vilnius is only 850 metres away. It is a great place for those who like the hustle and bustle of the city and sightseeing.
- Accessibility: It is easy to reach any part of the city.
About the project owner:
The owner of the project has extensive experience in the real estate sector, having developed more than 15 000 m2 of real estate projects („Smilciu namai", „Palanga Dreams", „Nidos banga", „Loft factory"). Currently developing the „Basanaviciaus 28" project.
About the project:
The owner of the project acquired the Corner Hotel. The developer is currently seeking to finance the development of the property. The developer will carry out renovation works on the building. The entire project includes a change of the hotel concept, refurbishment of the interior, introduction of a new business model, transformation of the property into a hybrid model, where part of the hotel rooms would operate as a hotel and part as a co-living project. Buyers will be able to purchase the property both for their own use and for rent. The restaurant will also be transformed into a gallery, restaurant and co-working space. The developer has similar experience and has developed a similar hotel concept in the project „Nidos banga". More about the project can be found here. The project is financed together with financial partner „NuCapital" (code I080), a closed-end investment fund for informed investors.
Project progress:
Currently, 10 identical rooms have been installed and the design of the corridors has been approved. The renovation of one of the corridors on the 4th floor is underway and is expected to be completed in the next two weeks. The façade has been approved and the technical design for the permit is underway.
Competitive environment:
Naujamiestis remains one of the most popular districts for new construction and conversion projects. The recently opened business centres are home to Vinted, Nord Security, Tesonet and other IT technology companies, whose employees are not only from Lithuania. Seeing the demand for rental housing, new apartment buildings are being built in the district (sales prices EUR 2 900/4 750/m2) and old factories and administrative premises are being converted (sales prices EUR 1 850/2 300/m2).
Also, there is ~15% of supply for long and short term rentals in this district. After the reconstruction, it is planned that the project under development will also be adapted to co-living type premises. This housing model means that the tenant pays a fixed rent (utilities are already included). The corridor (gallery) room system of former hotels is very suitable for this segment, as tenants have both a private space (a room with amenities) and a common space (gym, kitchen, library, co-working centre, cinema). The cost of renting a room depends on the size of the room and the number of occupants, but is usually no less than EUR 26/m2/month (or from EUR 500/month). The average rental price for a typical one-room apartment (26-36 m2) in 2023 was ~450 EUR/month (excluding utilities).
The maximum financed amount: EUR 1 750 000 (Amount raised EUR 1 399 375). The loan-to-value ratio of the loan to the mortgaged property (4 704 m2) is EUR 1 339.12/m2, while the market value of the property according to Newsec's valuation is EUR 1 600.57/m2. The price of the property to be sold after the development will be substantially higher than the maximum amount of the loan granted. The loan-to-value (LTV) without VAT ratio will not exceed 81% at this stage and 84% after the maximum loan has been granted.
Interest by investment amount:
– From EUR 100 to EUR 249 – 12.00%
– From EUR 250 to EUR 499 – 12.50%
– From EUR 500 to EUR 1 499 – 13.00%
– From EUR 1 500 to EUR 4 999 – 13.50%
– From EUR 5 000 – 14.00%
Important: investments made separately are not aggregated and cannot be pooled.
We plan to raise the amount within 7 days, with the option of extending it if we do not raise funds.
About the Profitus
Profitus is a crowdfunding and investment platform whose main goal is to make investment available to everyone. Investments start at 100 euros, and the platform is open 24/7. Investments are secured by pledging real estate and other collateral (e.g., indemnity or warranty). Different projects have different security tools that users can access in self-service for each project.
Profitus consults with the Bank of Lithuania in order to ensure perfect compliance with the law. Monetary operations on the platform are carried out in cooperation with Paysera and Trustly. The risk relating to the project and project owner are assessed on the basis of information provided by Creditinfo.
