• The owner of the project is developing a MIDI tunnel-type car wash, with right-hand access only;
• The property to be mortgaged and developed is located next to the main road A8 to Jelgava (South direction), with access from the right side of the road, in the direction of the entrance to the town;
• The owner of the project has developed more than 20 000 square metres of real estate projects;
• The developer will use the funds raised in this phase to continue further construction works, and the tunnel wash plant could be registered at 41% completion at the Registry Office;
• The developer has already invested EUR 1 110 000 of its own funds;
• The construction works are expected to be completed by 2024 Q3.

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 project owner purchased a 47.52-acre plot of land in Latvia, 156 Vienibas Street in 2021. The developer plans to construct a MIDI tunnel-type car wash. It will be built to 100% completion and rented for 36 months. At the end of the lease, the MIDI tunnel car wash will be sold. The planned sale price will be at least EUR 4 500 000 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. 

Project progress:
With the funds mobilised in the last phases, the engineering infrastructure and foundations continue to be installed, the volume of the building has been formed (allowing the building to be registered as 41% complete at the Registry Office), and the sandwich panels are being attached to the building columns. 

Please note that funding is based on the LTC indicator. The Loan-to-cost (LTC) ratio refers to the ratio between the loan and the total project cost. The project cost estimate provided by the independent real estate appraiser and project manager Colliers (land, preparatory works, preparation of documents and permits, and construction of the tunnel washing plant) is EUR 3 830 000.

Project financing will be provided on the basis of the submitted deeds of execution, within the maximum LTC of 65% and the maximum loan amount. No additional reassessment of the asset will be carried out between the financing rounds, and the financing decision will be based on the invoices and the fact of the works carried out.

Interest by investment amount:
– From EUR 100 to EUR 249 – 8.6%
– From EUR 250 to EUR 499 – 9%
– From EUR 500 to EUR 1 499 – 9.5%
– From EUR 1 500 to EUR 2 999 – 10%
– From EUR 3 000 to EUR 7 499 – 10,5%
– From EUR 7 500 – 11%
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.