- Experienced Developer: The project owner has more than 10 years of experience in real estate development. During this period, they have implemented projects of various purposes and accumulated experience in the development and operation of tunnel car wash facilities in Lithuania.
- Track Record with PROFITUS: The developer has already successfully completed two financing projects through the PROFITUS platform and fulfilled all obligations on time.
- Long-Term Tenant: A non-cancellable 50-year lease agreement has been signed with the tenant of the land plot, under which the project will generate no less than EUR 360,360 in annual rental income (excluding VAT). The rent is indexed annually according to the Latvian Consumer Price Index (CPI), providing potential for income growth in line with inflation.
About the Project:
In 2022, the project owner acquired two land plots located at Gunāra Astras iela 11, Riga, with a combined area of 4,559 m². The plots were purchased using the developer’s own funds. Following the acquisition, the developer completed the main preparatory works, including the consolidation of the plots into a single property unit, preparation of technical design solutions, and other development-related activities.
A modern “ProBro” tunnel car wash is planned to be constructed on the site and will be operated by PRO BRO operations LV SIA, one of the largest car wash operators in the Baltic States. To ensure long-term revenue stability, a non-cancellable 50-year lease agreement has been signed with the operator. Under the current lease terms, the project will generate EUR 360,360 in annual rental income (excluding VAT) during the first year of operation. An agreement has also been reached to increase the annual rent to EUR 384,792 (excluding VAT).
The rent will be indexed annually according to the Latvian Consumer Price Index, with no cap on indexation stipulated in the lease agreement. The development is expected to be completed within 9–10 months. Operations are planned to commence approximately 12 months after the start of construction. Following the opening, a period of up to 6 months is anticipated during which the car wash will reach full operating capacity and generate stable rental income. Subsequently, the project is expected to be refinanced through a bank.
Based on the current lease agreement and applying an 8% market yield, the projected value of the completed project is approximately EUR 4.5 million (excluding VAT). Following the agreed rent increase, the project value could rise to approximately EUR 4.8 million (excluding VAT).
Loan Information:
The loan will be repaid either through the sale of the property or by refinancing with another credit institution. Interest payments to investors will be covered from the company’s operating income.
Maximum planned financing amount: EUR 2,350,000. The project is financed based on the LTC (Loan-to-Cost) ratio, which represents the relationship between the loan amount and the total project cost. Funding will be disbursed based on submitted construction completion certificates directly to the general contractor’s account, without exceeding the maximum LTC ratio and the maximum loan amount. No additional property valuation will be carried out between financing stages. Financing decisions will be based on approved construction completion certificates issued by the Technical Construction Supervisor, together with proof of the client’s contribution having been paid.
The target funding amount is planned to be raised within 7 days, with the possibility of extending the fundraising period up to 30 days if the required amount is not collected within the initial period.
About the Profitus
Profitus is a crowdfunding and investment platform with a minimum investment of 100 euros. Profitus investments are secured by real estate mortgages, Your investment is secured by a first or second mortgage on the property, as well as by other collateral (e.g. a surety or guarantee). Transactions are managed through Lemonway, a regulated payment service provider.
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. Profitus operates with Lemonway, a regulated payment service provider.
