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Crowdestate has exited its first investment! We raised EUR 840.000 in December 2014 and paid out EUR 1.112.256 today to all investors participating in this project.
We managed to complete the project better than expected – while we sold the completed property at significantly better terms that expected, we managed to keep the development costs within the boundaries of original budget. We also managed to complete the project a bit faster than planned – instead of original 10 months (303 days) the project was wrapped up in 261 days.
Key events
The project started on December 23rd, 2014, when we concluded a notarized contract to acquired the land plots at 17 Kesk road in Jüri Industrial Park, Estonia.
Mitt&Perlebach OÜ was selected as the contractor and the construction contract was signed on January 2015. The actual construction works started in the beginning of February 2015 and were completed by August 31, 2015.
According the the letter of intent, the first lease contract for 50% of NLA was signed on January 24th, 2015.
A credit contract backed with a first-rank mortgage on the 17 Kesk road plot was Bank was signed with LHV Bank on January 30, 2015. While our original business plan accounted on a 1,4 million euro construction loan, the final credit decision was just 1,1 million euros, bringing along the need to attract additional EUR 300.000.
A mezzanine financing contract in the amount of EUR 300.000 with Perlebach Invest OÜ was signed on January 30th, 2015.
The lease agreement of the other half of the building was signed on April 22, 2015.
The preliminary sales contract for the completed project was signed on may 14, 2015 and sales price was fixed at EUR 3.204.000.
The construction works ended and the building usage permit was issued by August 31, 2015.
The completed building was handed over the the tenant on September 1, 2015.
The project ended on September 10th, 2015 when we signed the final sales contracts and transferred the ownership rights over to the buyer.
During the short funding campaign in December 2014, Crowdestate members pooled EUR 840.000 to finance the development of industrial building at 17 Kesk road in Jüri Industrial Park, Estonia. EUR 800.000 was invested into JTP Arenduse OÜ, the development SPV and EUR 32.000 paid to Crowdestate as their funding fee.
The projects final sales revenue was EUR 3.187.172,12, which is EUR 171.642,12 (5,69%) higher than the estimated revenues in the base case scenario.
The project’s costs totaled in EUR 2.407.583,29, which is EUR 1.124,29 (0,05%) higher than the estimated costs n the base case scenario.
The projects’ gross profit was EUR 779.587,83, which is EUR 170.517,83 EUR (28%) higher than the estimated gross profit in the base case scenario.
15% preferred interest amounting EUR 93.547,26 was computed on Crowdestate members’ EUR 800.000 investment.
According the JTP Arenduse OÜ’s shareholders’ agreement, EUR 218.327,78 EUR bonus interest was computed to Crowdestate’s members.
The total interest income earned by Crowdestate members from 17 Kesk road development project wasEUR 311.875,04 and key ratios were the following:
- net IRR: 48,07% p.a.
- money multiple: 1,37x
All investors have received comprehensive overview of the project and its finances.
