We present the new stage of staged financing project – „LOFT206 V". The pooled funds will be used to develop real estate and refinance an existing loan. The refinancing of the project was foreseen and weighed in the company's cash flow planning. The amount to be raised is EUR 69 700.
About the project owner:
The project owner has experience in real estate development. Implemented 7 different construction projects with a total area of 6 400 square meters. The developer is financing 5 projects on the Profitus platform („LOFT206", „Basanaviciaus patalpos", „Elniu namas Viciunuose", „Paslaugu patalpos Basanaviciaus al.",„Butas Vaidoto G192E–2"). Investors are paid interest on time. He has already returned part of the funds in „LOFT206" and „Basanaviciaus patalpos".
About the project:
The owner of the project has acquired an industrial building in 2021. He converted it into 56 lofts of 30-60 square metres. The project owner designed the functional spaces and rooms, custom-made loft furniture, selected and installed the necessary appliances and equipment for comfortable living. In total, 25 lofts remain in the project, of which only 2 are planned for sale. As of February 2023, the remaining lofts have been rented out, generating a rental income stream of EUR 400-500 per loft per month. The projected sales revenue is EUR 250 000. The owner of the project is currently developing other real estate projects, the proceeds of the sale of which will be used to repay this loan.
The maximum financed amount is EUR 378 000 (the active portfolio after the refinancing of the outstanding balance of Phase III will be EUR 264 000). The project is financed according to the current valuation of the mortgaged property until it reaches the set maximum LTV of 70%. 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) with VAT at this stage is 66%.
Risk category (probability of default) of this project: 7.
Interest by investment amount:
– From EUR 100 to EUR 499 – 10.5%
– From EUR 500 to EUR 999 – 11%
– From EUR 1 000 to EUR 1 999 – 11,25%
– From EUR 2 000 to EUR 4 999 – 11,5%
– From EUR 5 000 – 12%
Important: Individual investments 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.
About the Profitus
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. Monetary operations on the platform are carried out in cooperation with Paysera and Trustly. The risk relating to the project and project owner are assessed on the basis of information provided by Creditinfo.
