Projects list

Buy to let project Bruninieku str. 61, Riga, Latvia (Purchase)

Project cancelled

Amount of funding 205 000 €

Expected rental yield Up to 9.3%

Fixed interest rate 3.00%

Loan period

36 mo.

Risk

A (low)

Purpose of the loan

Buy-to-let

Collateral Real estate pledge

Country

Latvia

Investors 0

Raised:
0 € Goal:
205 000 €

0.00%

Business loan terms

About the loan

Purpose of the loan Buy to let

Amount of funding 205 000 €

Risk A (low)

Payment of interest Every month

Loan repayment At the end of the loan period

Loan period 36 mo.

Collateral

Real estate pledge

Mortgage rank First order mortgage

Nordstreet introduces another buy-to-let property offering (English: "Buy to Let"), which allows platform members to finance real estate for rent and earn from the increase in property value after the sale of the property!

Detailed breakdown of project returns

1) Fixed interest 3%. Even if the real estate is not rented out, investors will still receive 3% fixed annual interest.

2) Fluctuating interest up to 9.3%. This percentage includes fixed interest of 3%. This figure is derived from occupancy and rental price data provided by Innorental.

IMPORTANT TO MENTION: If the rental price or occupancy statistics exceed historical data during the lease term, all the surplus profit generated by the lease (after deduction of administrative costs) will go to Nordstreet platform investors!

You can see the availability of the apartments and their detailed layout on the Airbnb platform:

3) Planned real estate growth of 5.3%. If at the end of the project term (after 36 months) the value of the apartment (NT) will be higher than when they were purchased, the project investors will receive 80% of the real estate appreciation value (price increase) after sales taxes.

Distribution of capital gains:

For investors: 80%
Nordstreet: 20%

Payment schedule is not applicable for this project. The interest generated by the project depends on the accommodation of the properties. It is planned to start renting the premises March 10, 2023. The first interest payment (after deducting administrative costs) will be paid to project investors on 2023-04-15. Payments are made for the results generated during the previous month. Subsequent interest payments will be made on the 15th of each month.

Investment from 100 €.

Interest

Annual interest rate

Investing from 100.00 € - fixed interest 3 %

Expected investment yield to - 9.3%

The Interest on the Loan Amount shall be calculated from and including the date of disbursement of the Loan Amount to the Debtor's Account or to such other account (or accounts) as notified by the Debtor to the Operator in writing prior to the disbursement of the Loan Amount.

Loan term and repayment

Loan period 36 mo.

Minimum loan period 0 mo.

Loan repayment At the end of the loan period

Estimated start date of the loan:* 2023-03-10

Estimated loan repayment date:* 2026-03-10

If the Debtor repays the Loan earlier than after the specified minimum loan period, it undertakes to pay interest to the Lender for the entire specified minimum period.

* The loan is planned to be repaid by the end of the project term from the expected growing income of the company, increasing profits, sale of assets or refinancing of the loan.

Procedure for disputes between parties to a financing transaction

The investor has the right to withdraw their investment within 96 hours from the submission of the money lending proposal on the platform

Debtor

Company registration address

Borrower:

Company established as a special purpose vehicle for this project. Although the company developing the project is new, the project owner signs a cooperation agreement with the project administrator Innorental.

Development Property Administrator Innorental:

Innorental - started operations in 2021 in Latvia. The company is a professional management service provider. The company manages more than 50 objects. The total portfolio amounts to more than 5 million euros. The company's shareholders have more than 5 years of experience in real estate management.

Innorental was created in order to solve the problem of time, which many real estate owners face today, how to employ their property without using it. The goal of the company is to help the real estate owner get as much as possible (income, flexibility, opportunities, peace of mind) and to provide an exceptional experience to every guest who stays.

Innorental combines modern and innovative property management tools such as booking platforms, housekeeping programs, dynamic pricing and more.

Advantages of short-term rental:

Short-term real estate owner to earn from 15-50% more income compared to long-term rental;
Short-term rentals offer more flexibility if you're staying on your own or with friends and family;
guests guests spend less time at home because they spend most of the day in the city;
The administrator makes sure to take care of any minor problems by inspecting the trout every few days.

Loan protection collateral

Pledged first real estate mortgage property:

4 separate room apartment, cadastre no. 0100 921 6399, address Bruninieku str. 61, Riga, Latvia, area 155,3 m2.

Value of pledged assets: EUR 208 000

Project location:

Although the apartments are located in the center of Riga, they are located in a quieter area compared to other areas. You can reach the main attractions of Riga on foot. Just a few minutes from the apartment you will find one of the city's best cafes and restaurants and one of the most beautiful parks in Riga, Ziedondarzs.

Strengths and risks

Strengths:

The first order of real estate pledge - mortgage.
The project is completed.

Weaknesses:

The borrower has been operating for less than a year.
Borrower 's activities are in a competitive sector.
The LTV rate of the project is high.

Possibilities:

The annual interest rate payable by the borrower is 3.00%.

Threats:

A young company.
Uncertain economic situation.

Documents

#	File name	File type	Actions
1	Riga_Bruninieku_61_telpa_Nr.601_Final.pdf

Important

Nordstreet takes the following measures to ensure a safer investment:

The loan to value ratio of the project will not exceed the LTV ratio provided in the project description, including in cases when the project will be financed in stages.
If the required amount of funding is not collected before the start of the project, all investments will be returned to the investors. Upon application by the Debtor, the financing may be considered to have been successfully completed with a smaller amount collected, the financing of the project may be divided into several stages and / or the financing period of the project may be extended. In these cases, Nordstreet informs the funders and publishes the information on the completion of the project with a smaller amount, the division of the project funding into several stages or the extension of the project funding period on its website together with other information about the project.
By investing in a project, financiers acquire rights of recourse (claim rights). Nordstreet may provide the financiers with the possibility to transfer these claim rights to other users of the platform on the Secondary Market in accordance with the User Terms.
The activities of UAB Nordstreet are supervised by the Bank of Lithuania and UAB Nordstreet is included on the Public List of Operators of Crowdfunding Financing Platforms administered by the Bank of Lithuania.

About the loan

Purpose of the loan Buy to let

Amount of funding 205 000 €

Risk A (low)

Payment of interest Every month

Loan repayment At the end of the loan period

Loan period 36 mo.

Collateral

Real estate pledge

Mortgage rank First order mortgage

Detailed breakdown of project returns

1) Fixed interest 3%. Even if the real estate is not rented out, investors will still receive 3% fixed annual interest.

2) Fluctuating interest up to 9.3%. This percentage includes fixed interest of 3%. This figure is derived from occupancy and rental price data provided by Innorental.

You can see the availability of the apartments and their detailed layout on the Airbnb platform:

Distribution of capital gains:

For investors: 80%
Nordstreet: 20%