• The project owner is developing a MAXI tunnel car wash, which will be able to handle about 220 cars per hour, with access from both sides of the road;
• The shareholders of the company and their partners have built 7 tunnel car washes and developed about 24 000 sq. m of real estate projects in Lithuania;
• The project development works are expected to be completed in July this year;
• A 50-year non-cancellable lease agreement has already been signed with PRO BRO operations SIA, with an estimated annual rental income of EUR 363 000 excluding VAT;
• The project owner has already invested approximately EUR 1.5 million of its own funds.

About the project owner:
The project owner's group of companies has the status of a trusted developer, operating for more than 13 years and well known in the Lithuanian market. Its subsidiaries have developed more than 20 mixed-use real estate projects. Over the last 4 years, in cooperation with PRO BRO Group, they have completed or are currently implementing 12 built-to-suit tunnel wash projects and are building the PRO BRO Group headquarters.

About the project:
The owner of the project has acquired a 5 920 sq. m plot of land in Latvia at 100 Mūkusalas Street in 2021. The developer plans to build a MAXI tunnel-type car wash, which will serve about 220 cars per hour, with access from both sides. It will be built to 100% completion and rented for 36 months. At the end of the lease, the MAXI tunnel car wash will be sold. The planned sale price will be at least EUR 5 185 714 excluding VAT.

There is also a 50-year non-cancellable lease agreement with PRO BRO operations SIA, which obliges the project owner to pay EUR 363 000 per year in rental income, excluding VAT, in the first year of operation. This amount will be indexed annually to the Latvian CPI (inflation). There is no ceiling for indexation. The agreement shall enter into force upon handover of the premises to the tenant. The shares of the company in the carwash building will be sold afterwards. A refinancing of the project with a Latvian bank has now been agreed. The expected date of refinancing is until 15 September 2024.

Project progress:
The funds mobilised in the last phases are continuing to build the engineering infrastructure and foundations, and to shape the volume of the building. The building could be registered with the registry office at 86% completion.

Please note that funding is based on the LTC indicator. The Loan-to-cost (LTC) ratio refers to the ratio between the loan and the total project cost. The project cost estimate provided by the independent real estate appraiser and project manager Colliers (land, preparatory works, preparation of documents and permits, and construction of the tunnel washing plant) is EUR 3 830 000.

Please note that the project will be financed in subsequent phases on the basis of the LTC indicator. The LTC ratio (Loan-to-cost) refers to the ratio between the loan and the total project cost. According to estimates confirmed by Colliers, the independent project manager of this project, the total project cost including the land acquisition cost is EUR 5 206 000. The project financing will be provided on the basis of the submitted acceptance of the construction works, to the account of the general contractor, within the maximum LTC of 64% and the maximum loan amount. No new valuation of the property will be carried out between the financing phases and the financing decision will be based on the certified acceptance of the works by the Building Surveyor and the evidence of the Client's payment of the equity share. 

Interest by investment amount:
– From EUR 100 to EUR 199 – 9.00%
– From EUR 200 to EUR 499 – 9.30%
– From EUR 500 to EUR 999 – 9.60%
– From EUR 1 000 to EUR 2 999 – 10.00%
– From EUR 3 000 to EUR 9 999 – 10.30%
– From EUR 10 000 to EUR 29 999 – 10.60%
– From EUR 30 000 – 11.00%
Important: investments made separately are not aggregated and cannot be pooled.

The project has a timeframe of 4 months, but no longer than 15 September 2024. The loan will be refinanced with another credit institution.

We plan to raise the amount within 7 days, with the option of extending it to 21 days if we do not raise funds.