Dear investors,
After thorough deliberation, we have made the difficult decision to discontinue our real estate crowdfunding and payment service operations, and initiate the liquidation process. This decision stems from the increasingly challenging geopolitical and economic environment that has adversely affected our business.
Since the onset of COVID-19, we have experienced a decline in the real estate investment activity, further exacerbated by high inflation and rising interest rates, ultimately leading to diminished investor interest in real estate investments. Consequently, maintaining the operations of our platform has become economically unsustainable.
Our legacy in real estate crowdfunding
Established in 2014, Crowdestate has been a pioneer in European real estate crowdfunding.
Over the years, we have:
- Raised over €150 million for real estate projects across Europe, including Estonia, Latvia, Finland, Italy, Portugal, and Romania;
- Built a community of over 70,000 international investors from more than 120 countries, providing them with access to professional real estate investment opportunities;
- Provided our investors with an average annual net return of 9.33%, reflecting our commitment to delivering value;
- Demonstrated our dedication to supporting small and medium-sized real estate developers with equity and debt financing.
We are immensely proud of these accomplishments and deeply grateful for your trust and participation throughout this journey.
Liquidation process
- We have notified our regulator, Estonian FInancial Supervision Authority, of our shutdown decision and submitted our request to revoke our European Crowdfunding Service Provider’s licenss. We will keep working closely with them to ensure the proper and smooth shutdown of the platform.
- We intend to keep the platform operational during the liquidation period, expected to last at least until the end of March 2026.
- We have ceased the onboarding of new investors and creating new business relations.
- Investors are strongly encouraged to withdraw their funds at their earliest convenience, as there will be no more new investment projects on the platform. The secondary market will be closed, and investors will no longer have the option to buy or sell investments through the platform.
- Our payment services will be limited to withdrawals to investors’ own bank accounts only, payments to third parties shall not be available.
- We will continue to collect funds from ongoing, late and defaulted investment projects during the liquidation period. All recovered funds will be credited to investors’ investment accounts, allowing for withdrawals as they become available.
- We recommend investors setting standing orders to their investment accounts, that will redirect any credits made to their investment account straight to investors’ bank accounts, thus minimising investors’ cash balances with us.
- Before the conclusion of the liquidation process, any remaining funds will be automatically remitted to investors’ registered bank accounts.
- Our investor support team will remain available via email until the end of April 2025. After this period, investors should access investment updates exclusively via the platform.
- For technical support, investors can continue to contact us via our general email. While our resources will be limited, the liquidation team will strive to respond promptly.
Necessary updates regarding the liquidation process will be communicated through our blog and social media channels.
Recommendations for investors
- Log in to the platform and check the accuracy of your investment account details, especially your bank or payment account information (account number, bank name, SWIFT code, etc.). Update your details if necessary to ensure that all payouts reach you without delays.
- Transfer the available balance from your investment account to your bank or payment account by submitting a corresponding withdrawal request for the desired amount.
- Set up a standing order on your investment account to transfer any incoming funds from your investment account to your bank or payment account at an interval that suits you (we recommend using “Total account balance” for “Amount” and “Daily” for “Frequency”). You can add a new standing order via the menu item “Payments” > “New standing order.”
- To stay informed about the crowdfunding offers available in your investment account, follow the investment overviews published on the platform.
Final message from the team
Despite our efforts to build a strong and lasting alternative investment platform, we encountered challenges that we could not overcome. The shutdown decision was made with sadness and heavy heart, and we understand that it may be disappointing for many of you.
Over the past decade, we have had the privilege of collaborating with an incredible community of investors, real estate developers, and other partners. Your support has enabled us to finance innovative real estate projects and provide you with exciting investment opportunities across Europe.
Despite the challenges leading to this decision, we remain proud of our collective achievements. We sincerely thank each of you for your trust, commitment, and participation in this journey.
Should you have any questions, please refer to our blog or contact our support team while available. We appreciate your understanding and cooperation during this transition.
With sincere gratitude,
Crowdestate team
