- We are pleased to announce that the PRO BRO car wash has already opened its doors: Marking the successful implementation of a project that began in October 2023. The project started according to plan and is now open for business.
- Eco-conscious business: MIDI-type tunnel car washes minimize environmental impact, with over 80% of water being treated and reused, and the car wash generating about half of its required electricity from solar panels installed on its roofs. This conserves the environment and reduces operating costs.
- The project owner's strong commitment and firm belief in the project's success are evident by his investment of about 37% of his own funds, or roughly EUR 1.6 million.
- Long-term stability and reliable profits: Ensured through a 50-year lease agreement for the MIDI tunnel washer with PRO BRO operations SIA. This lease guarantees an annual income of EUR 316 000 excluding VAT.
Project Rating (Project Loss Risk): AA. This rating is consistent with the previous project rating of A-.
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. It has developed 12 built-to-suit tunnel carwash projects, has already built and opened the first tunnel dry-cleaning carwash in Vilnius, and is in the midst of completing the PRO BRO Group's head office in the Lithuanian capital.
About the project:
The owner of the project has acquired a 4 752 m2 plot of land in Latvia at 156 Vienibas st. in 2021. The developer plans to build a MIDI tunnel-type car wash. It will be built to 100% completion and rented for 36 months. At the end of the lease, the MIDI tunnel car wash will be sold. The planned sale price will be at least EUR 4 517 829 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 316 000 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 were used to continue the installation of the engineering infrastructure and foundations, and to shape the volume of the building. The building could be registered with the registry office at 100% completion.
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 3 830 000 excluding VAT. 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 65% 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 249 – 8.50%
– From EUR 250 to EUR 499 – 9.00%
– From EUR 500 to EUR 1 999 – 9.40%
– From EUR 2 000 to EUR 6 999 – 9.80%
– From EUR 7 000 to EUR 19 999 – 10.10%
– From EUR 20 000 – 10.50%
Important: investments made separately are not aggregated and cannot be pooled.
The project has a timeframe of 3 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.
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.
