MB "LSG 7" acquired a two-apartment residential building project at Horizonto St. 2A, Kaunas, Lithuania, to complete the development of the project and sell the property. A 7.08a plot of land has been acquired with a project, a construction permit, and already poured house foundations. The construction of a two-room residential house with a total area of ​​220 m2 will be built under the construction project.

The developer purchased the plot for EUR 72 000 (excluding VAT), registered the construction of a two-apartment building (the registered completion of which is 6%), and started construction work. According to the property appraiser's calculations, the actual completion of the building is currently 46%. According to the submitted business plan, the planned costs for the full development of the project are approximately EUR 460 000 (including VAT), and the planned sales revenue is EUR 532 000.

According to the submitted updated property valuation report of the mortgaged property, its current value is EUR 171 000.

The "Horizonto 2A" project will be funded in several stages. The developer plans to borrow EUR 350 000 for the entire project's development. During the two funding stages, the developer borrowed EUR 69 100. After receiving financing, the developer installed ceilings between the first and second floors of the building, fully completed the wall masonry work, and is currently preparing for roof construction work. In the third funding stage, the company borrows EUR 44 100 (LTV 67%). To secure investors' investments, the director of the company MB "LSG 7" additionally guarantees the loan.

The interest will be paid from the company's operating income or the shareholder's contributions, and the loan will be repaid from the sale of the mortgaged property or the sale of other properties developed by the company.

The project developer has experience in the field of development of real estate projects. The total area of developed ​​projects is 1 000 m2. The experience of developer-related companies in implementing projects of various sizes in Kaunas is more than 20 years. The company's portfolio of implemented projects includes both individual residential houses (from 200 to 500 m²) and larger projects - apartment blocks (about 6,000 m²). The total area of ​​projects implemented by the company reaches 10,700 m². Among the implemented projects are residential houses in Chemijos, Kaštonų, Žaliakalnio, Giraitės, Narsiečių, and Lubinų streets in Kaunas, as well as a large block in Ugniažolių street in Giraitė.

Offer for investors

·        annual interest rate: 9.5%-11.25%*,

·        interest payment frequency: quarterly,

·        investment duration: 12 months,

·        repayment of the investment: after the end of the contract,

·        LTV: 67%,

·        project rating: C,

·        funding amount – EUR 44 100,

·        collateral value: EUR 171 000,

·        collateral: primary mortgage.

*The final interest rate for the investment in this project depends on the additional interest applied to the investor (up to +1%) and the amount invested in the project:

·        +0.25% additional interest is applied for investments from EUR 350,

·        +0.5% additional interest is applied for investments from EUR 700,

·        +0.75% additional interest is applied for investments from EUR 1 200.

For the additional interest rates to be applied, make sure to invest a specified amount as one investment. Separate investments in the same project are not summed up.

Crowdpear employees, shareholders, and related persons also invest/can invest in the investment offers open on the Crowdpear platform and are subject to the same conditions as other investors. According to regulatory requirements, this is mandatory information disclosure, which should not be perceived as investment advice or a recommendation to invest in a loan.

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To secure investments, investors are pledged a 0.0708 ha land plot and a 218,82 m2 (according to the project) residential building at the address Horizonto St. 2A, Kaunas.

Assets pledged to investors in this funding stage are and can be used to secure the project owner's obligations in other (further) funding stages of this Project. The following stages of funding will be carried out when (if) the Project owner continues the development of the Project and increases the value of the pledged property.

The maximum expected LTV of the Project is 70 percent.

At all stages of the Project, the property will be pledged to the investors with a primary mortgage. The company's CEO, Ugnė Leškuvienė, guarantees the loan.

When investing in this staged funding Project, funds will be returned to Investors in separate stages. Investors who invested in the first funding state of this Project will be settled first. Other repayments will be made to investors who have invested in the second, third (this one), and subsequent funding stages. This condition does not affect the priority of the investors' right to the collateral and the total ratio of the collateral to the invested amount. This condition also does not apply in case of termination of the Loan Agreement.

Real estate is pledged to secure the interests of investors:

1.      Property type – land plot

2.      Property type – building (residential building)

The value of the mortgaged real estate was determined by:

·        Independent property appraiser: UAB “Ober-Haus”.

·        Determined value of mortgaged property (plot of land) (including VAT): EUR 171 000.

·        Value determination date: 05.03.2025.