Loftai, Kaunas XVProfitus
Loan for real estate development – stage XV of “Loftai, Elektrenu st.”. The company will use the borrowed funds for conversion of administrative premises into appartments.
Construction / reconstruction permits have been obtained for the project and reconstruction works have already begun.
The developer has two administrative premises at Elektrenai str. 8N, Kaunas. The reconstruction of 116 lofts / flats has started on these premises.
We share the latest information on the success of this project:
• The first floor is ready for rent, the apartments are fully finished. There are 24 apartments on this floor. In addition, epoxy flooring will be installed in the corridors until August 28, 2020, as well as a modern ceiling network and lighting fixtures. Furnished apartments are planned to be rented for 200-250 euros per month. The planned rental income is 57,600 euros per year.
• Another 30 apartments have been formed on the second floor. The formation of apartments consists of: G / K partitions, G / K ceilings, ventilation systems, water, sewage, electricity inlets. Full finishing of 15 apartments will be done by 2020-10-01, the remaining apartments will be installed by 2020-11-30. The ordered furniture, after which these apartments will be rented for 200-250 euros per month. The planned rental income is 72,000 euros per year.
• Another 30 apartments are being formed on the third floor. By August 24, 2020 will be brought water, sewage, electricity inlets to 15 apartments, they plan to complete them by September 14, 2020. Once the apartments are fully finished, they will be rented too.
Assets at Elektrenai str. 8n, Kaunas: two administrative premises with a total area of 3,810 sq. m and 35 rented, 14-40 sq. m of apartments with a floor area of 794 sq. m. are mortgaged to protect the interests of investors. Completeness of the pledged apartments – 100%.
Assets (parcels of land) pledged to investors during this and previous funding stages will also be used to secure the obligations of the project owner in the next (additional) stages of financing, provided that the project owner raises the value of the pledged property to a maximum LTV of 55%. Investors of all stages will be pledged with a primary mortgage.
An annex to the first-stage loan agreement will be concluded with the project owner regarding the payment of the additional amount, leaving a lien on the same property.
When investing into this project, during the second and subsequent funding stages, the invested funds will be repaid to investors only after settlement with the investors who have invested in the previous funding stages. This condition does not affect the seniority of the investor’s right to the collateral, the overall ratio of the collateral to the amount of the investment. This provision will also not apply in the event of termination of the loan agreement.
The project is funded based on the current mortgage valuation until it reaches the maximum LTV set. When maximum LTV is reached, a new valuation of the property will be required and further project funding stages will be announced and collected only if the maximum LTV set is not exceeded.
We plan to raise the amount within 7 days, with the option of extending it to 21 days if we do not raise funds.