• Potential of the City of Liepāja: Liepāja is a strategically attractive city with a recovering real estate market, growing residential housing demand, and increasing investor activity, creating favorable conditions for property value growth and successful project realization. 
• Experienced Developer: The project owner has many years of experience in real estate development and construction and has successfully completed projects in Liepāja with a total area of approximately 10 400 m², including Uliha iela 11 (~8 000 m²), Jaunā iela 10 (~1 500 m²), Strautu iela 6 (~500 m²), and Alejas iela 10 (~400 m²). 
• Liquidity: The project is being developed in an area characterized by stable real estate market activity – over the past two years, nearly 300 apartment purchase-sale transactions have been concluded annually within a 1–2 km radius. Considering the location, market activity, and competitive pricing, it is expected that buyer demand for the project will be sufficient and apartment sales will proceed smoothly.

Interest rates according to investment amount:
– From 100 EUR to 299 EUR – 9.00%
– From 300 EUR to 599 EUR – 9.30%
– From 600 EUR to 1499 EUR – 9.60%
– From 1 500 EUR to 3999 EUR – 9.90%
– From 4 000 EUR to 9 999 EUR – 10.20%
– From 10 000 EUR to 19 999 EUR – 10.50%
– From 20 000 EUR to 49 999 EUR – 11.00%
– From 50 000 EUR – 11.50%
Important: separate investments are not accumulated and cannot be combined.

About the Project:
The project owner intends to acquire a 4 459 m² administrative-purpose building in Liepāja, located in a strategically attractive area – close to the sea and only about 4 km from the city center of Liepāja. The building was commissioned in 1972. Its usable area amounts to 3 488 m², while the remaining area consists of corridors and basement premises. Currently, the first floor contains leased commercial premises with an area of 550 m², while an additional 403 m² is leased in the semi-basement. The property currently generates approximately 8 500 EUR in net rental income per month or about 102 000 EUR per year. The current property yield amounts to 11.30%.

The developer plans to gradually convert the building into a residential project. According to the prepared project, 52 apartments will be developed on floors 2–5 with a total saleable area of 2 261 m². The project includes:

• 32 one-room apartments with kitchens, each measuring 34.20 m²;
  
• 12 two-room apartments with kitchens, each measuring 51.00 m²;
  
• 8 three-room apartments with kitchens, each measuring 69.00 m².

The second floor already contains 13 apartments adapted for living purposes; however, they are currently not legally registered as residential property. One of the first and most important stages of the project is the installation of an elevator, which will allow apartment registration and significantly increase the attractiveness of the entire building for tenants and buyers.

The third floor is currently almost fully leased and generates approximately 2 090 EUR in net rental income per month. A hostel currently operates on the fourth floor, generating around 4 000–4 500 EUR in monthly revenue. The upper floors currently experience lower occupancy due to the lack of an elevator; however, the developer estimates that after implementing improvements and upgrading the infrastructure, the building could achieve full occupancy.

The project will be developed in stages, therefore a large part of the building will continue generating rental income throughout the development period. The basement, first floor, second floor, and rooftop antenna leases will continue during the entire loan period, while the third floor is expected to generate income for approximately 6 months. It is estimated that around 94 740 EUR in net income will be generated during this period.

It is planned that the renovation cycle of one floor will take approximately 4–5 months, with works being carried out in stages, floor by floor, ensuring smooth project implementation and uninterrupted operation of part of the property. Upon completion, the building will become a modernized mixed-use residential and commercial property with significantly increased asset value and higher yield generation.

The property location offers good connectivity, developed infrastructure, and growing demand for residential and short-term rentals, giving the project strong investment potential in both the long-term and short-term perspective.

Loan Information:
The loan will be repaid through refinancing at another credit institution or from the proceeds of the property sale, while interest to investors will be paid at the end of the term from the proceeds of the property sale.

Maximum financing amount: EUR 1,300,000, of which a portion will be raised by securing the loan with a first-rank mortgage and another portion by securing the loan with a second-rank mortgage. The project is financed according to the current valuation of the pledged property until the maximum allowed loan-to-value (LTV) ratio is reached. Once the maximum LTV is reached, a new property valuation must be carried out, and further financing stages of the Project will only be announced and raised if the established maximum LTV is not exceeded.

We plan to raise the target amount within 7 days, with the possibility to extend the fundraising period up to 30 days if the amount is not collected.