About the project owner:
The owner of the project has extensive experience in the real estate sector, having developed more than 15 000 square metres of real estate projects („Smilciu namai", „Palanga Dreams", „Nidos banga", „Loft factory"). Currently developing the „Basanaviciaus 28" project. 

Project objective:
UAB „Realside" has signed a share purchase and sale agreement to purchase 100% of the shares of the Project Companies. The shares of the Project Companies are purchased with own funds and the maximum loan amount will be raised from the current creditor for the refinancing of the loan of EUR 5 800 000, for the working capital of the company of EUR 50 000 and for the development of the project of EUR 450 000. Following the acquisition of the Project Companies, the owner of the project will apply for financing of up to EUR 450 000 for the development of Corner Hotel.

About the project:
The developer intends to carry out renovation works on the building. The entire project includes a change of concept, refurbishment of the interior, introduction of a new business model, and transformation of the property into a hybrid model, where part of the hotel rooms would operate as a hotel and part as a co-living project. Buyers would be able to acquire a property that is not only used for their own interests but also for generating income in the hotel system. The restaurant is also being transformed into a gallery, restaurant and co-living space. The developer has an excellent track record and has developed this hotel concept in a project called „Nidos banga“.

Naujamiestis remains one of the most popular districts for new construction and conversion projects. The recently opened business centres are home to Vinted, Nord Security, Tesonet and other IT technology companies, whose employees are not only from Lithuania. Seeing the demand for rental housing, new apartment buildings are being built in the district (sales prices EUR 2 900/ EUR 4 750/square metres) and old factories and administrative premises are being converted (sales prices EUR 1 850/ EUR 2 300/square metres).

Also, this neighbourhood has ~15% of the supply of long and short term rental housing. After the redevelopment, it is planned that the project under development will also be adapted for co-living accommodation. This housing model means that the tenant pays a fixed rent (utilities are already included). The corridor (gallery) room system of former hotels is very suitable for this segment, as tenants have both a private space (a room with amenities) and a common space (gym, kitchen, library, co-working centre, cinema). The cost of renting a room depends on the size of the room and the number of occupants, but is usually no less than EUR 26/square metres/month (or from EUR 500/month). The average rental price for a typical one-room apartment (26-36 square metres) in 2023 was ~ EUR 450/month (excluding utilities).

The structure of a financing transaction:
As the total amount to be mobilised for the project exceeds the amount defined in the crowdfunding regulation, for this financing „Sutelktinio finansavimo platforma „Profitus“ is joining a syndicated loan agreement with its financial partner „NuCapital“ (code I080), a closed-end investment fund for informed investors.

The first amount to be raised through „Sutelktinio finansavimo platforma „Profitus“ is EUR 2 050 000, which will represent 45.1% of the syndicated loan amount, while the investment fund „NuCapital“ will provide EUR 2 500 000, which will represent 54.9% of the syndicated loan amount. This syndicated loan agreement will be secured by a first ranking mortgage on the real estate, a first ranking pledge of the shares of the Project Companies and the leasehold interest in the land (which will be delayed due to the formalities of obtaining the permits), and a guarantee by UAB „Vystyk", which will become effective together with the disbursement. This loan will be reimbursed from the proceeds of the sale of the project to be developed, which are expected to amount to up to EUR 13 000 000.

The second amount of funding to be mobilised through „Sutelktinio finansavimo platforma „Profitus“ is EUR 1 750 000 (for the refinancing of the existing lender's loan and the remaining EUR 1 300 000 for the development of the project). This loan will be granted at the same time as the syndicated loan, but without the participation of a financial partner, and is secured by a second ranking mortgage on the real estate, a second ranking pledge of the shares of the Project Companies and the leasehold right of the land plot (for which the maturity date will be delayed due to the formalities of obtaining the permits), and the guarantee of UAB „Vystyk", which will come into effect along with the disbursement.

The above loans will be entered into and disbursed after (and if) UAB „Realside" acquires ownership of 100% of the shares in the Project Companies, allowing for the refinancing of the existing lender's loan.

The maximum financed amount: EUR 2 050 000 (EUR 694 000 already raised). The project is financed according to the current valuation of the mortgaged property until it reaches the set maximum LTV of 61%. Once the maximum LTV is reached, a new valuation of the property will have to be carried out, and the further stages of financing the project will be announced and collected only if the set maximum LTV is not exceeded. The loan-to-value ratio (LTV) without VAT at this stage is 47%.

Risk category (probability of default) of this project: 7/12.

Interest by investment amount:
– From EUR 100 to EUR 999 – 10.5%
– From EUR 1 000 to EUR 9 999 – 10.75%
– From EUR 10 000 to EUR 49 999 – 11%
– From EUR 50 000 to EUR 124 999 – 11.25%
– From EUR 125 000 to EUR 249 999 – 11.5%
– From EUR 250 000 – 12%
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 if we do not raise funds.