• Experienced developer: The project owner, who is also the shareholder of the company, possesses extensive experience of around 40 years in the real estate sector. Having successfully completed apartment building projects in Riga over the last 9 years, he has a comprehensive understanding of this segment.
• The project owner has demonstrably committed to the project's success: By investing EUR 2.2 M of its own funds in its development, underscoring a strong belief in the project's potential.
• Completion of the building: ~71% completion according to the evaluation report. 

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 m². 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 one-room to five-room apartments suitable for larger families. Regardless of the size of the apartment, which ranges from 34 to 103 m², the layout of each apartment has been designed to maximise the use of space. The apartments will be available for sale upon completion of the construction works and upon reaching 100% completion. The estimated sales income is EUR 22 687 500 including VAT. The 3rd and 5th floor blocks of the project will be equipped with studio apartments for long term rentals. The rental income of the leisure units with long-term lease agreements is estimated at EUR 205 000 per annum excluding VAT (studio units at EUR 410 incl. VAT/m² per month). The 1st floor commercial premises will be leased and sold. A letter of intent to sell to SIA TVERIJA is currently being signed. The leisure and commercial premises will be sold upon reaching 80% completion and the buyers will be responsible for adapting them to the needs of the tenants.

Project progress:
This phase will be used to refinance the existing loan, as the sale of the apartments and the premises has been delayed and the refinancing is needed to pay off the investors in phase III. The actual completion of the building is currently around 71%. The owner of the project is in the process of subdividing the blocks, establishing a tenancy regime for block A - 4 995 m² for sale, block B - 2 359 m² for rent and block C - 1 267 m² for rent of commercial space.

Maximum planned amount of funding for the project: EUR 5 000 000 (Current active portfolio of EUR 5 000 000 with a EUR 250 000 refinancing loan to be used to pay off stage III investors). 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 (LTV) ratio excluding VAT at this stage is 50%. 

Interest by investment amount:
– From EUR 100 to EUR 299 – 10.00%
– From EUR 300 to EUR 1 499 – 10.50%
– From EUR 1 500 to EUR 9 999 – 11.00%
– From EUR 10 000 to EUR 74 999 – 11.50%
– From EUR 75 000 – 12.00%
Important: investments made separately are not aggregated and cannot be pooled.

The project has a timeframe of 3 month, but no longer than 1 November 2024.

We plan to raise the amount within 7 days, with the option of extending it to 30 days if we do not raise funds.