We present new phase of phased financing project – „Terramisu IV“. 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 185 000.
About the project owner:
SIA Būvniecības Partneri is a company whose main shareholder has 40 years of experience in the construction sector. The related companies specialise in design, construction contracting, construction of new apartment buildings and adapting old commercial buildings for residential use. The Group has been operating in Latvia since 2014. Since 2015, it has been involved in the construction of 10 apartment buildings with a total area of at least 59 000 square metres. This is the first joint project between SIA Būvniecības Partneri and Arco Real Estate on the Profitus platform.
The aim of the project:
The 9-storey blocks of the project will offer apartments that will meet the needs of today’s clients, from compact studio to 4 bedroom 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 has been designed to maximise the use of space. The project’s 3- and 5-storey blocks will include studio apartments for long-term rentals. The ground floor will also offer commercial space for rent. The projected rental income stream for the leisure and commercial space, excluding VAT, is EUR 373 000 per year. The apartments will be available for sale upon completion of the construction works and upon reaching 100% completion. The expected sales revenue is EUR 17 000 000 including VAT.
The project is currently completing the façade, roof and construction works on the upper floors. New elevators have been installed and the fit out of apartments has started, while and new premises are being formed.The ground floor floor is already being concreted. The brokerage company (Arco real estate), that they received 12 applications for potential purchases. 5 clients already got confirmation letters of guarantee from the banks and will start preliminary sales when building will reach 80% completion level. It is expected that 80% completion level will be achieved by the end of the year and notarial transactions can start in the second half of 2024. At this stage, it is planned to continue with deferred payments for services rendered, the fit out of a commercial space for rent, as well as the installing solar panels on the roof, the complete renovation of the Northern side of the façade, and the preparation of the building for occupation.
Maximum planned amount of funding for the project EUR 5 000 000 (EUR 3 100 000 already raised). 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. The loan-to-value ratio (LTV) with VAT at this stage – 46%.
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 19 999 – 11%
– From EUR 20 000 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.