We present the new phase of the phased financing of the project – „PRO BRO tunelines automobiliu plovyklos pastatas Rygoje II". The funds raised will be used for the expansion of the tunnel car wash. The amount to be raised in this phase is EUR 190 000.

About the project owner:
The project owner's group of companies has the status of a reliable developer, has been operating for more than 13 years and is well known in the Lithuanian market. Its subsidiaries have developed more than 20 mixed use real estate projects with a total area of 20 000 square metres. In the last 4 years, in cooperation with the „PRO BRO", they have completed or are currently implementing 12 built-to-suit tunnel car wash projects and are building the „PRO BRO" headquarters.

About the project:
Svaros broliai, the long – established leaders in car cleanliness services in Lithuania's major cities, is expanding its network abroad – it is planning to set up a MAXI tunnel car wash in Mukusalas st. 100, Riga, Latvia. Which will service up to 220 cars per hour.

The aim of the project:
The project owner is planning to develop ProBro Maxi tunnel washing plant on part of the land (36 acres).  It will be built up to 100% completion and leased for 36 months. The agreed rental income for the whole period is EUR 1 350 000. The agreed sales revenue for the tunnel wash plant is EUR 5 500 000.

Progress of the project:
Currently there is a 50-year non-cancellable lease agreement with PRO BRO Operations LV SIA and a 7-year lease guarantee with Svaros broliai UAB. Also, KNVP LV3 SIA has signed a preliminary sale of the company's shares with Plovyklos LT, 36 months after the start of the operation of the tunnel washing plant. After the first phase, SIA KNVP LV 3 refinanced EUR 760 000 of the EUR 800 000 loan granted to SIA Payray. The remainder of the loan was repaid by the client itself. The amount mobilised by the platform is always verifiable as the client has to pay the contractor's invoices by the 15th of the following month. Also, once the development loan amount of EUR 864 000 has been reached, a construction inspection will be carried out in order to determine the quality of the work carried out and to oblige the correction of any defects in the work, should they occur. The lease agreement is currently signed and will be indexed annually to the Latvian CPI (inflation). There is no ceiling for indexation. The agreement shall enter into force after the handover of the premises to the tenant.

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 an estimate provided by Colliers, an independent real estate valuer, the total cost of the project, including the acquisition cost of the land, is EUR 5 206 000. The project will be financed on the basis of the submitted deeds of completion, within the maximum LTC of 64% and the maximum loan amount. No new asset valuation will be carried out between funding rounds, and the funding decision will be based on the invoices and the fact that the work has been done.

Interest by investment amount:
- From EUR 100 to EUR 4 999 – 8.5% 
- From EUR 5 000 to EUR 19 999 – 8.75% 
- From EUR 20 000 – 9% 
Important: investments made separately are not aggregated.

We plan to raise the amount within 7 days, with the option of extending it to 21 days if we do not raise funds.