• The developer is a professional in his field and has developed over 27 000 sq. m of real estate projects in Riga. The developer has a keen understanding of the needs of today's market and is building A+ economy class housing for the young family in Jurmala;
• The apartments are to be furnished with all appliances and furniture and sold. Sales revenue of EUR 4.16 million is expected;
• The development is located in Jurmala, in a pine forest, ~2 km from the Baltic Sea;
• Registered completion of the mortgaged property is 60%, actual completion is about 75%;
• The development of the project is expected to be completed in November 2024, with notarial transactions expected to start at the same time.

About the project owner:
The groups of companies are experienced in real estate development. They have developed 8 apartment blocks with a total saleable area of approximately 27 500 sq. m. The shareholder of the company is also the owner of the Heila parks modular construction plant, which is planning to carry out the Heila parks development project. 

About the project:
The company wants to acquire by auction an unfinished apartment building in Jurmala with 19 apartments and a saleable area of 1 600 sq. m. The project owner intends to sell the apartments furnished. The developer has already invested 40% (almost EUR 800 000) of its own funds, which covered the initial down payment of the apartment building. The aim at this stage is to finance the rest of the purchase transaction. This loan will be repaid from the proceeds of the sale of the project to be developed and the interest will be paid to the investors from the operating income of the project owner.

The construction works are to be financed using the LTC method, whereby the project owner is the first to transfer its 30% share of the funds and Profitus will only transfer its share of the loan after the construction works have been signed off by its appointed construction supervisor, which will further reduce the investor's exposure to the risk of misuse of funds.

The maximum financed amount: EUR 1 900 000. The project is financed on the basis of the current valuation of the collateral until it reaches the established maximum loan-to-value ratio of 79% LTV. Once the maximum LTV has been reached, a new valuation of the property will have to be carried out and further rounds of financing for the Project will only be advertised and collected if the set maximum LTV is not exceeded. 

Interest by investment amount:
– From EUR 100 to EUR 499– 11.50%
– From EUR 500 to EUR 749 – 11.75%
– From EUR 750 to EUR 1 499 – 12.0%
– From EUR 1 500 to EUR 2 999 – 12.50%
– From EUR 3 000 to EUR 9 999 – 13.0%
– From EUR 10 000 to EUR 24 999 – 13.50%
– From EUR 25 000 to EUR 49 999 – 14.0%
– From EUR 50 000 to EUR 99 999 – 14.50%
– From EUR 100 000 – 15.0%
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.