- Experienced developer: The project owner, who is also the shareholder of the company, possesses extensive experience of around 40 years in the real estate sector. Having successfully completed apartment building projects in Riga over the last 9 years, he has a comprehensive understanding of this segment
- Reservations for apartments are already ongoing: The client's sales representatives keep the client informed of new bookings on a weekly basis. Currently, 31% of the apartments are already reserved.
- Potential buyers: Currently a letter of intent has been signed with SIA TVERIJA for the sale of the ground floor commercial premises. A letter of intent has been signed with SIA ALTAMIRA for the sale of the first floor apartment block. According to the information provided, the company will adapt the furnishing of the acquired premises for the future tenants.
- The project owner has demonstrably committed to the project's success: By investing EUR 2.2 M of its own funds in its development, underscoring a strong belief in the project's potential.
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 m². 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 m², the layout of each apartment has been designed to maximise the use of space. The apartments will be available for sale upon completion of the construction works and upon reaching 100% completion. The estimated sales income is EUR 22 687 500 including VAT. The 3rd and 5th floor blocks of the project will be equipped with studio apartments for long term rentals. The rental income of the leisure units with long-term lease agreements is estimated at EUR 205 000 per annum excluding VAT (studio units at EUR 410 incl. VAT/m² per month). The 1st floor commercial premises will be leased and sold. A letter of intent to sell to SIA TVERIJA is currently being signed. The leisure and commercial premises will be sold upon reaching 80% completion and the buyers will be responsible for adapting them to the needs of the tenants.
Project progress:
The funds for this stage will be used to refinance the existing loan, as the sale of the apartments and the premises has been delayed and the refinancing is needed to pay off the stage I investors. The building is currently about 70% complete. The heating and water supply systems, electrical wiring, and doors are being installed and partitions are being formed in the apartments. Final negotiations with the operator of the retirement home are underway, as well as negotiations with a sports club, a beauty salon and a laundry. The sale of the commercial premises is expected in the near future.
Maximum planned amount of funding for the project: EUR 5 000 000 (Current active portfolio of EUR 5 000 000 with a EUR 3 100 000 refinancing loan to be used to pay off stage I investors). 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 50%.
Interest by investment amount:
– From EUR 100 to EUR 499 – 12.00%
– From EUR 500 to EUR 1 199 – 12.50%
– From EUR 1 200 to EUR 3 499 – 13.00%
– From EUR 3 500 to EUR 14 999 – 13.50%
– From EUR 15 000 to EUR 74 999 – 14.00%
– From EUR 75 000 to EUR 199 999 – 14.50%
– From EUR 200 000 to EUR 349 999 – 15.00%
– From EUR 350 000 – 15.50%
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 30 days if we do not raise funds.
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.
