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Crowdestate in collaboration with Endover Real Estate made crowdfunding history in Estonia when investors funded a record-breaking 1.5 million euros into the VEGA project. The project includes the reconstruction of the building that formerly housed the Estonian Maritime Academy.
Robert Laud, member of the board of Endover Real Estate said “Vega project can already now be considered very successful, as with this development we have many conditions that favor this project. Consumers have free cash on hand and they wish to use it to earn more. As the interest rates offered by banks are even lower than inflation, investors see the real estate sector as a strong alternative, because the growth and yield of this sector seem best at the moment.”
“Additionally, there is a clear demand for apartments in the largest district of Tallinn. Adding a new development of quality and reasonable pricing in this area means that there is already a great interest from the local population – the almost 300 units available have already had over 1000 persons registered as interested parties” added Laud.
Within three and a half days 1036 investors from 26 countries contributed in financing this project with the expected return of 15.33%. Crowdestate CEO Loit Linnupõld said “VEGA development is a good way for our investors to invest along with a truly professional real estate developer. We are certain that the building that formerly housed the Estonian Maritime Academy will become one of the fanciest apartment buildings in Tallinn.”
“In the current environment of low interests, projects with an attractive yield and reasonable risk levels are hard to come by, but with the VEGA development they are both in balance,” said Linnupõld. “Estonia’s largest real estate development has now also become Estonia’s largest crowdfunded project with both the amount financed and the number of investors that participated.”
VEGA real estate development is the seventh project that has brought Crowdestate investors to finance a project of Endover’s. From the earlier projects, two have been successfully exited already and the third exit is planned for the end of February.
“Similarly to previous projects of Endover, VEGA has an experienced team, an attractive interest, pricing that will favor quick sales and over a thousand people already signed up to know more about the apartments available” added Linnupõld.
Address: Mustakivi str 25, Tallinn
Amount of apartments: 297
Planned date of completion: December 2017
Architect: Janar Blehner, APEX Architecural Bureau
Developer: Vega Residents OÜ
Pricing: 1 340 – 2 200 EUR/m2
Crowdestate investment facts:
Total amount funded: 1 500 000 €
Number of investors: 1036
Type of investment: Development
Type of capital: Unsecured loan
Investment term: 30 months
Expected IRR: 15,33%
Risk level: B2
Expected date of exit: 31.01.2017