A developer with a successful exit for Crowdberry investors. Finance the renovation of the UP.77 apartment building in the centre of Banská Bystrica, with a legally valid building permit in place.
The developer has already proven its ability to deliver results: The Suchý Vrch Residence in Banská Bystrica, generating a return of approximately 14% p.a., marks the second successful exit in Banská Bystrica on the Crowdberry platform.
UP.77 builds on this success. Finance the renovation of the apartment building through a secured junior loan offering a 12.3% p.a. return and an 18-month maturity. The project has secured senior financing from Tatra banka.
The acquisition of the existing building for EUR 1,530,000 is financed by the developer from its own funds, prior to any loan drawdowns.
The building is located just 15 minutes' walk from SNP Square, close to schools, kindergartens, shops and a hospital. The renovation and extension of the top floor will create a modern residential development featuring 15 apartments, one commercial unit and 20 parking spaces.
The apartments in the new residence will have an average floor area of 61 m², with an average planned selling price of EUR 245,000. This equates to EUR 3,997 per m², including VAT, which is 7.5% below the average price of new-build apartments in Banská Bystrica. Even if selling prices decline by 18%, the project model provides for full repayment of the investors' interest.
Loan Amount: EUR 1,200,000 | Return: 12.3% p.a. | Maturity Date: 30 June 2028 | Minimum Investment: EUR 1,000 | Credit Rating: C
Gross return calculation
Why Invest?
- Experienced Developer: FWD Group, with whom Crowdberry investors successfully completed the Suchý Vrch Residence project in Banská Bystrica on schedule, achieving a gross return of approximately 14% p.a.
- Legally Valid Building Permit for Both the Renovation and the Extension.
- Short-Term Investment: 18-month maturity under the base-case scenario, with repayment by 30 June 2028.
- Interest Return: 12.3% p.a. (fixed margin of 9.0% p.a. + 12M EURIBOR), paid in a lump sum at maturity.
- Senior Construction Financing: Tatra banka provides senior financing through a loan of up to EUR 1,100,000.
- Four-Layer Security Structure, Including a First-Ranking Lien over Unsold Apartments Following Repayment of the Bank Loan.
- Safety Buffer: The project model provides for full interest payments to investors even in the event of an 18% decline in property sale prices.
- Located in the City Centre, Within Walking Distance of SNP Square, Government Offices and the Hospital.
About the Developer
Investment Parameters
Investment Structure | Secured Junior Loan |
|---|---|
Target Amount | EUR 1,200,000 (minimum EUR 800,000) |
Minimum Investment | EUR 1,000 |