As the world moves forward from the recent turbulence in the financial markets, we continue to work on increasing the platform’s transparency while sourcing and managing multiple crowdfunding and group buying projects across the Baltics.
In recent years, we have undertaken several investment projects and lent more than €14m with the LTV ratio of 55.15% on average. With 14.75% average weighted return, around 6 000 investors from 130 countries have built their confidence in residential properties, land plots, and commercial projects managed by Bulkestate.
In this blog post, we are sharing an overview of our outstanding projects of financing real estate development deals. For the first review, we have chosen three of the largest and most talked-about development projects on Bulkestate platform.
Besides, from now on, a monthly update on all outstanding projects will be published with a description of the current situation at the development sites and the overall situation of each issued loan. The updates starting from July 14th will be available in the investor profile forums along with monthly blog posts and newsletters.
In spring 2019, a crowdfunding project was started with a goal to purchase the property on Vīlipa street and finance its renovation. The funding was attracted in 4 rounds for the amount of €890 000. The last financing round took place in March 2020.
The property on Vīlipa street is in close proximity to the Kalnciems districts, a hip 19th-century complex. The purchase included a land plot and two buildings – a wooden structure and masonry building housing apartments and commercial premises. The wooden building consists of eight flats, whereas the four-story-high masonry building has 18 apartments and three commercial premises.
As we anticipated, the project has progressed well until this point. The renovation began in summer 2019 and has already resulted in completely renewed facades of both buildings. During the buildings’ renovation phase, the front doors and windows were replaced as well as ordered hand-crafted shutters from a qualified local carpentry contractor.
For the masonry building, attics are now sealed and insulated as well as refurbished staircases. Meanwhile, the wooden building has undergone an incredible transformation with a new electricity connection and a gas heating system in place. There have been some construction works to strengthen the basement and insulate exterior walls and floor for one of the apartments.
Aside from the building’s renovation work, the reconstruction of water and sewer lines was carried out. Currently, the workers are continuing to develop the surrounding area to improve the look and functionality of the property.
As things stand now, the buildings are commissioned for operation, and the apartments are on sale. The sales are planned to complete between November 2020 and March 2021.
Blaumaņa street 9
The investment object on Blaumaņa street 9 is renowned for its historical value and location in the quiet and highly prestigious neighborhood. The massive property includes two large residential buildings with a total area of 9444,2 sq.m and a land plot with a total area of 2649 sq.m.
We engaged in group-buying of the apartments on Blaumaņa street 9 and, in turn, issued a loan to the property owner to refinance financial responsibilities to the bank and third parties. Group-buying is a relatively new but highly successful concept in the real estate industry. In this case, we found buyers and sold out 37 apartments in a very short time completing the sales for 4,612,761.00 EUR.
Currently, we are working on the documentation of property ownership split among the buyers while the renovation works are about to start in July 2020. Heating, water and sewer connections will be repaired in the residential buildings, whereas the apartments will remain in their original condition. Additionally, the courtyard will be turned into a modern outdoor space.
According to the development plan, by the end of 2020, the renovation works will be finalized and return to investors repaid.
Miera street 5
The Art Nouveau building on Miera street 5 is located in a creative district that continues to evolve and grow. The potential of the neighborhood is enormous with such nearby development projects as the renovation of Dailes theatre and Vidzemes farmer’s market on the horizon.
For this project, €44 000 was raised on the platform to provide additional funding for the purchase of the apartment and development of the construction project. Right now, the renovation works are almost completed in the building, including the renewing of the building’s facade from both street and courtyard sides. Other than that, electricity grid and communications are repaired along with water and sewer risers.
The reconstruction of the elevator will add a new extension to the upper attic floor and will make the building more accessible to everyone. Besides the elevator, two staircases are restored in a way that preserves its historic character.
Keep tabs of this property, because it has a unique attic floor with a total area of 387 sq m and ceilings as high as 7 m - making it easy to transform them into industrial lofts. The top floor will be divided into five apartments and some of them will be equipped with a roof terrace providing a spectacular view of the city.
During the renovation, not only the upper floor will be repaired but also the surrounding area creating greenery and a new playground in the courtyard.
What to expect next month?
As previously mentioned, this will be a monthly occurrence as our commercial team will inform all the readers about our outstanding projects. Not only we will discuss the execution of the development projects but also we will touch upon other funded investment opportunities.
Our goal is to provide a concise and understandable overview for our investors describing the ins-and-outs of each already funded investment opportunity.
So that's a wrap for this time! Stay tuned for the next update and if you would like to find out what we are up to, subscribe to our newsletters and read the blog.