- Extensive Experience in Real Estate: The group of companies has accumulated significant experience in the real estate sector, including project development, financing, and management. The company has developed over 20 unique real estate projects. This ensures that the project will be implemented professionally and efficiently.
- Equity: The project owner has already invested EUR 280,000 of their own funds. This demonstrates their commitment to the project and belief in its success.
- Personal Guarantee: The project owner also provides a personal guarantee, which further ensures the safety of investor funds.
Interest by investment amount:
– From EUR 100 to EUR 299 – 9.00%
– From EUR 300 to EUR 749 – 9.50%
– From EUR 750 to EUR 2 999 – 10.00%
– From EUR 3 000 to EUR 9 999 – 10.50%
– From EUR 10 000 – 11.00%
Important: Individual investments are not aggregated and cannot be combined.
About the Project:
Having conducted an analysis of the hotel market in Kaunas, the developer noticed a lack of attractive places for temporary stays. Currently, there are only a few well-known brands in Kaunas, such as "Park Inn", "Ibis", or "Best Western", and no new accommodation options have been established in the last five years. Therefore, the developer decided to establish a new hotel in Kaunas.
The hotel is planned to have 19 rooms, 10 of which will be on the second floor and the remaining 9 in the attic (5 with windows facing Laisvės Avenue and 4 with windows facing the courtyard). According to the Register Centre, the registered completion of the hotel is 100%, but the actual completion is 80%. The estimated annual rental income for all rooms is EUR 95,000.
Location Description:
The hotel is located in a prestigious part of Kaunas - Laisves Avenue. The hotel windows offer views of the heart of Kaunas, surrounded by cultural heritage buildings housing well-known brand stores, cafes, and various types of restaurants. In terms of transportation, the hotel is located in a very attractive location: near several public transport stops. A particularly big advantage is that a large part of the hotel rooms have windows facing Laisves Avenue, so future guests can enjoy their morning coffee with a beautiful view. The Kaunas hotel market has been experiencing very high occupancy rates (55-78%) for several years, indicating a shortage of hotel supply. The occupancy rates in the hotel market in Kaunas city have been among the highest since 2018, and only one larger 175-room "Moxy" hotel has been built in Kaunas in the last few years. The city continues to invest in centers of attraction and develop international business centers.
Project Progress:
The project owner has used the funds raised in previous stages to dismantle and dispose of the old roof structure and covering, install a monolithic ring and strengthen the slab, install a new roof structure, lay the roof covering, install downpipes and snow guards. To improve the energy efficiency of the building, the roof was insulated from the inside. In addition, new windows and skylights were installed. These works significantly increased the value of the building - according to the latest property valuation, it increased by EUR 323,000. The funds raised in this stage will be used to continue further construction work.
Loan Information:
This loan will be covered by refinancing with a long-term loan from another credit institution. Interest to investors until the start of the hotel's operations will be paid from the shareholder's loan and 7% will be covered by UAB "Invega", later - by the hotel's operating income.
Maximum Planned Project Financing Amount: EUR 1,100,000 (current active portfolio EUR 592,500). The project is financed based on the current valuation of the collateral until it reaches the specified maximum loan-to-value (LTV) ratio. Once the maximum LTV is reached, a new property valuation will need to be performed, and further project financing stages will be announced and collected only if the specified maximum LTV is not exceeded.
We plan to raise the required amount within 7 days, with the possibility of extending the period up to 30 days if the funds are not raised.
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.
