Promotional project No. 9/10

Apraksts

Update from 05.01.2021 - Since conclusion of the contract, Borrower has had 2 payments according to schedule and both of them were paid on time. Furthermore, the Borrower has also made the payment due for the end of January, 2021.

After two stages of financing, borrower has done construction according to plan and plans to register the building in the Land book at the end of January, 2021. Construction terms have not changed and the object is expected to be commissioned by end of July 2021.

This project gives LendSecured investors an opportunity to finance the second and the last stage of construction works of a single - family house located in Riga, Beberbeku 9.linija 12A. The construction object consists of a land plot of 602 m² and a house of 98.2 m² under construction, aimed to be commissioned until the end of 2021.

This is a chance for LendSecured investors to make a loan of € 11 500 with an annual rate of 13%, LTV of 46%, which has been calculated taking into account also the funding provided in the first stage of the project, loan term of 21 months, with monthly manner of interest payments.

The current market value of the collateral estimated by a certified appraiser is € 120 000 with an assumed future value of € 130 000 (LTV of 43%) upon the commission of the construction. To provide an additional guarantee the owner of the collateral is providing a personal suretyship in the full loan amount.

For the first stage of the construction, the borrower via LendSecured obtained a loan in the amount of € 44 000.00, which has allowed to fully complete the interior of the building, install the frame of the building's decorative cladding and establish connections to the external communication networks. The funding of the second stage of the project will be used in order to finish the outdoor work – decorative cladding of the building, fence and the pavement.

The Borrower is a board member of MVM Studija LLC, registered in the commercial register of Latvia with No. 40103177715, and operating since 2008. The Borrower is a successful real estate developer and has a great track record. This is the second real estate development project done by the Borrower in 2 years with the guidance of LendSecured. The financing of the previous object (construction of two-family residential house) was offered for the private investors of LendSecured, who recovered their investments in the term of 6 months.

In order to secure the claims, arising out of loan agreements, a second-hand mortgage in the amount of € 23 000.00 is registered on the collateral in the Land Register of Latvia. From the first stage of the project, there is also registered a first-hand mortgage in the amount of € 88 000.00 (outstanding loan € 44 000.00) in favour of the collateral agent. Aside from both mortgages, the collateral is debt free.

The Borrower aims to repay the loan from the sale of the collateral.