• Project description: The owner of the project is developing a MIDI tunnel car wash. MIDI tunnel washers are more modern and efficient than traditional washers.
• Project progress: The project is progressing smoothly according to plan, having started in October 2023 and expected to be completed in July 2024.
• Lease contract: Once the wash plant is fully installed, it will be leased to PRO BRO operations SIA for 50 years on a non-cancellable lease contract. Estimated annual rental income: EUR 316 000 excluding VAT.
• Investment: The project owner has already invested ~ EUR 1.6 million of his own funds.

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 4 752 sq. m plot of land in Latvia at 156 Vienibas st. in 2021. The developer plans to build 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 4 517 000 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 316 000 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 mobilised in the last phases are continuing to build the engineering infrastructure and foundations, and to shape the volume of the building. The building could be registered with the registry office at 90% completion.

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 3 830 000. 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 199 – 9.00%
– From EUR 200 to EUR 499 – 9.30%
– From EUR 500 to EUR 999 – 9.60%
– From EUR 1 000 to EUR 2 999 – 10.00%
– From EUR 3 000 to EUR 9 999 – 10.30%
– From EUR 10 000 to EUR 29 999 – 10.60%
– From EUR 30 000 – 11.00%
Important: investments made separately are not aggregated and cannot be pooled.

The project has a timeframe of 4 months, 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 21 days if we do not raise funds.