We present a second financing round for the project “Terramisu”. The funds from this round will be used for conversion of a multi-purpose building (formerly a polyclinic) into residential – recreational housing and commercial premises. The amount to be raised at this stage is EUR 250 000.
The aim of the project:
The project’s 9 storey blocks will offer apartments that meet the needs of today’s customer, from compact one-room apartments to five-room apartments suitable for larger families. Regardless of the size of the apartment, which ranges from 34 to 103 square metres, the layout of each apartment is designed to maximise the use of space. The 3 and 5 storey blocks of the project will be equipped with studio-style holiday apartments for long-term rentals. On the ground floor, commercial space will also be available for rent.
The apartments under construction will be sold:
The project will be developed with 100% completed residential apartments and the apartments will be sold with a projected sales revenue of EUR 17 700 000. The estimated annual rental income for the commercial premises is EUR 168 000.
Progress of the project:
The project is currently under construction on the upper floors. New lifts have been installed and work has started on the apartments, as well as the installation of partitions. Most of the façade work has been completed and new windows have been installed throughout the building. The next phase will include other residential units, commercial space for rent, solar panels on the roof, cleaning of the northern side of the façade and preparation of the building for occupation.
To secure the interests of investors, real estate is pledged with a primary mortgage:
To ensure the interests of investors, a land plot of 9 461 square meters and a multi-purpose building of 13 224 square meters are pledged, at Prusu st. 1A, Riga. Once registered in the project, the newly created premises will also be pledged to investors. According to an independent real estate appraiser SIA „Arco real estate“, the value of real estate pledged to investors is EUR 8 994 000. In the future the value will reach EUR 17 670 000.
The maximum planned amount of project financing: EUR 5 000 000 (EUR 3 100 000 raised during previous rounds). The project is financed according to the current valuation of the mortgaged property until it reaches the set maximum LTV. Once the maximum LTV is reached, a new valuation of the property will have to be performed, and further stages of the Project financing will be announced and collected only if the set maximum LTV
Interest by investment amount:
– From EUR 100 to EUR 999 – 10%
– From EUR 1 000 to EUR 4 999 – 10.5%
– From EUR 5 000 to EUR 9 999 – 11%
– From EUR 10 000 to EUR 29 999 – 11.5%
– From EUR 30 000 to EUR 49 999 – 12%
– From EUR 50 000 – 14%
Important: investments made separately are not aggregated.
We plan to raise the amount within 7 days, with the option of extending it to 21 days if we do not raise funds.