- Experienced developer: The project owner has experience in real estate development and adapting properties for commercial use. Previous projects include the acquisition and conversion of a 2 600 m² non-residential property complex for warehousing purposes, as well as the construction of the first padel courts in Rapla County in 2021.
- Long-term lease agreement: A non-terminable five-year lease agreement has already been signed with the Estonian Defence League, a national defence organisation operating under the authority of the Estonian Ministry of Defence. Under the agreed contractual terms, the organisation would be obliged to purchase the property upon expiry of the lease period.
- Projected rental income: Rental income is expected to start being generated in early 2027 and will gradually increase as additional premises are handed over. The premises will be handed over in stages until 31 December 2027. According to the project's financial projections, rental income would be sufficient to cover the loan servicing costs. The agreement also provides for annual rent indexation, creating conditions for rental income growth.
Interest rates based on investment amount:
– From 100 EUR to 299 EUR – 12.00%
– From 300 EUR to 599 EUR – 12.25%
– From 600 EUR to 1 999 EUR – 12.50%
– From 2 000 EUR to 5 999 EUR – 12.75%
– From 6 000 EUR to 11 999 EUR – 13.00%
– From 12 000 EUR to 24 999 EUR – 13.25%
– From 25 000 EUR to 49 999 EUR – 13.50%
– From 50 000 EUR to 100 000 EUR – 13.75%
– From 100 000 EUR – 14.00%
Important: Individual investments are not aggregated and cannot be combined.
About the project:
The project owner intends to develop a non-residential real estate property in Estonia, adapting it to the operational needs of the Estonian Defence League (EDL), a voluntary national defence organisation. A non-terminable five-year lease agreement has already been signed, under which the organization undertakes to lease the property for five years and, upon expiry of the lease term, purchase it.
The Estonian Defence League is a voluntary national defence organisation structured according to military principles and operating under the Estonian Ministry of Defence. In terms of its structure and functions, it is similar to the Lithuanian National Defence Volunteer Forces (KASP) and the Lithuanian Riflemen's Union. The organisation has approximately 18 000 active members and, together with its affiliated organisations, brings together more than 30 000 volunteers. EDL focuses on strengthening Estonia's national security, improving public preparedness for national defence and developing the country's defence capabilities.
One of the project's key advantages is a financially strong tenant committed to long-term cooperation. The Estonian Defence League has an annual budget of approximately 50 million EUR, while a new funding budget of approximately 400 million EUR has been approved for the 2027–2030 period. The organisation's increasing funding reflects the Estonian government's commitment to strengthening national defence and creates favourable conditions for the long-term development of the organisation's operations and infrastructure. The planned property is strategically important to the organisation, as the Estonian Defence League currently lacks a centralised operational base in the county where the property is located. The organisation's strong interest in occupying the property is further demonstrated by a tender worth approximately 300 000 EUR for the installation of telecommunications networks to the property. A construction contract with the winning bidder is expected to be signed in the near future.
Project development and financing purpose:
The project owner plans to carry out development and adaptation works to ensure that the property meets the operational requirements of the future tenant. The total budget for the planned works amounts to 1 327 000 EUR. Without waiting for external financing, the owner has already started investing its own funds, with more than 220 000 EUR invested in the project to date. The project aims to raise 1 600 000 EUR in financing through the PROFITUS platform. Of this amount, approximately 700 000 EUR will be allocated to refinancing existing loans, while the remaining 900 000 EUR will be used to finance construction and property adaptation works. The project owner plans to cover the remaining funds required for project implementation from its own resources.
Long-term rental income and property sale:
Under the terms of the planned lease agreement, the property will be handed over to the Estonian Defence League (EDL) in stages, with a total of 11 separate handovers planned. Following each handover, the corresponding rental income will begin to be generated, allowing cash flow to increase gradually even before the entire property has been fully handed over.
According to the project's financial projections, rental income will be sufficient to cover the loan servicing costs. The lease agreement also provides for annual rent indexation, meaning that rental income is expected to increase gradually.
Under the terms of the agreement currently in place, EDL would be obliged to purchase the property upon expiry of the five-year lease period.
Once the project has been completed and all projected rental income is being generated, the property owner also anticipates the possibility of refinancing the loan on more favourable terms, including financing from banks. This could allow investors' funds to be repaid even before the planned sale of the property.
The project stands out for its clearly defined intended use, a planned long-term lease agreement with Estonia's national defence organisation, and the anticipated acquisition of the property upon expiry of the lease period. At the same time, the implementation of the project would contribute to the development of Estonia's defence infrastructure and the strengthening of security in the Baltic region.
Loan information:
The loan will be repaid from the proceeds of the developed property's sale, while interest payments will be covered by rental income. Please note that interest will start accruing once the full amount required for refinancing, i.e. 815 000 EUR, has been raised.
Maximum planned project financing amount: 1 600 000 EUR. The project loan agreement term is 72 months. Funds for the project may be raised in stages, with the current financing stage covering a period of 12 months. At the end of this stage, funds may be raised again to extend the financing. The project is financed based on the current valuation of the pledged property until the established maximum loan-to-value ratio (LTV) is reached. Once the maximum LTV is reached, a new property valuation must be carried out. Further project financing stages will only be launched and funded if the established maximum LTV is not exceeded.
We plan to raise the target amount within 7 days, with the possibility of extending the fundraising period to 30 days if the required funds are not collected.
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.
