- Rapid implementation: We are pleased to report that the project, which started in October 2023, has been successfully implemented and has been running smoothly since its inception. The project started on time and went according to plan. The PRO BRO car wash is ready to welcome cars from 30-07-2024.
- Experienced team: The company's shareholders, together with their partners, have already successfully completed 7 tunnel washes and 24 000 m² of real estate projects. Their experience and knowledge guarantee smooth project execution and long-term success.
- Continuously growing demand: Carwash services are in high demand, and the efficiency and convenience of the MAXI carwash further reinforces this trend.
- Huge profitability: The car wash can clean 220 cars in one hour. The MAXI tunnel car wash has an incredible capacity to cater to a huge customer traffic and generate maximum profit.
- The project owner's strong commitment and firm belief in the project's success are evident by his investment of about 42% of his own funds, or roughly EUR 2.2 million.
About the project owner:
The project owner's group of companies has the status of a trusted developer, operating for more than 13 years and well known in the Lithuanian market. Its subsidiaries have developed more than 20 mixed-use real estate projects. Over the last 4 years, in cooperation with PRO BRO Group, they have completed or are currently implementing 12 built-to-suit tunnel wash projects and are building the PRO BRO Group headquarters.
About the project:
The owner of the project has acquired a 5 920 m² plot of land in Latvia at 100 Mūkusalas Street. The developer plans to build a MAXI tunnel-type car wash, which will serve about 220 cars per hour, with access from both sides. It will be built to 100% completion and rented for 36 months. The shares in the MAXI tunnel washing plant are to be sold at the end of the lease agreement. The planned sale price will be at least EUR 5 185 714 excluding VAT.
There is also a 50-year non-cancellable lease agreement with PRO BRO operations SIA, which obliges the project owner to pay EUR 363 000 per year in rental income, excluding VAT, in the first year of operation. This amount will be indexed annually to the Latvian CPI (inflation). There is no ceiling for indexation. The agreement shall enter into force upon handover of the premises to the tenant. The shares of the company in the carwash building will be sold afterwards. A refinancing of the project with a Latvian bank has now been agreed. The expected date of refinancing is until 15 September 2024.
Project progress:
The funds raised in the last phases were used to continue the installation of the engineering infrastructure and foundations, and to shape the volume of the building. The building could be registered in the Registry centre as 100% complete.
Please note that the project will be financed in subsequent phases on the basis of the LTC indicator. The LTC ratio (Loan-to-cost) refers to the ratio between the loan and the total project cost. According to estimates confirmed by Colliers, the independent project manager of this project, the total project cost including the land acquisition cost is EUR 5 206 000. The project financing will be provided on the basis of the submitted acceptance of the construction works, to the account of the general contractor, within the maximum LTC of 64% and the maximum loan amount. No new valuation of the property will be carried out between the financing phases and the financing decision will be based on the certified acceptance of the works by the Building Surveyor and the evidence of the Client's payment of the equity share.
Interest by investment amount:
– From EUR 100 to EUR 499 – 8.50%
– From EUR 500 to EUR 1 499 – 9.00%
– From EUR 1 500 to EUR 6 999 – 9.50%
– From EUR 7 000 to EUR 24 999 – 10.00%
– From EUR 25 000 – 10.50%
Important: investments made separately are not aggregated and cannot be pooled.
The project has a timeframe of 1 month, but no longer than 15 September 2024. The loan will be refinanced with another credit institution.
We plan to raise the amount within 7 days, with the option of extending it to 30 days 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.
