About the project owner:
SIA Būvniecības Partneri is a company whose main shareholder has 40 years of experience in the construction sector. The related companies specialise in design, construction contracting, construction of new apartment buildings and adapting old commercial buildings for residential use. The Group has been operating in Latvia since 2014. Since 2015, it has been involved in the construction of 10 apartment buildings with a total area of at least 59 000 square metres. This is the first joint project between SIA Būvniecības Partneri and Arco Real Estate on the Profitus platform.

The aim of the project:
The 9-storey blocks of the project will offer apartments that will meet the needs of today's clients, from compact one-room to five-room apartments suitable for larger families. Regardless of the size of the apartment, which ranges from 34 to 103 square metres, the layout of each apartment has been designed to maximise the use of space. The project's 3rd and 5th floor blocks will be equipped with studio holiday apartments for long-term rentals. The leisure facilities, with long-term lease agreements, are expected to generate rental income of EUR 205 000 per annum, excluding VAT (the studio units are rented at EUR 410 per square metre per month, including VAT). The estimated value of the studio space is EUR 2 000 000 excluding VAT. The owner plans to spin off these assets into a new company. The apartments will be sold upon completion of the construction works and upon reaching 100% completion. The estimated sales proceeds are EUR 17 000 000 including VAT.

Project progress:
Contracts are currently being negotiated with a retirement home operator, a beauty salon and a bakery. According to the information provided by Arco real estate, there are ~20 interested people and 8 have received preliminary offers for the terms of the mortgage. It is expected that 80% completion will be achieved by the end of the year and notarial transactions can start in the second half of 2024. The registration of commercial and recreational premises under separate unique numbers will start in the near future. Negotiations with Senior Group Europe are ongoing. The estimated value of the commercial premises is EUR 1 800 000 excluding VAT. The funds from this round will be used for conversion of a multi-purpose building (formerly a polyclinic) into residential – recreational housing and commercial premises.

Maximum planned amount of funding for the project: EUR 5 000 000 (EUR 4 200 000 already raised). The project is funded based on the current mortgage valuation until it reaches the maximum LTV set. When maximum LTV is reached, a new valuation of the property will be required and further project funding stages will be announced and collected only if the maximum LTV set is not exceeded. The loan-to-value (LTV) ratio excluding VAT at this stage is 49%. In order to continue financing the project, the project owner will be required to carry out a new appraisal of the property, the value of which must not be less than EUR 10 000 000.

Interest by investment amount:
– From EUR 100 to EUR 499 – 11.3%
– From EUR 500 to EUR 749 – 11.6%
– From EUR 750 to EUR 1 499 – 11.8%
– From EUR 1 500 to EUR 2 999 – 12.1%
– From EUR 3 000 to EUR 9 999 – 12.4%
– From EUR 10 000 to EUR 24 999 – 12.7%
– From EUR 25 000 to EUR 49 999 – 13%
– From EUR 50 000 to EUR 99 999 – 13.4%
– From EUR 100 000 – 13.8%
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 to 21 days if we do not raise funds.