Object

The mortgaged property is located in Āgenskalns, a popular residential area in Riga, near to river Daugava and consists of a wooden apartment building with the current total residential area of 888.2 sq.m. After the construction of the third story will be completed the total area of the building will be 1885.1 sq.m.

The building will consist of 37 apartments after the renovation and construction works will be concluded. The surrounding area is a mix of residential houses and light commercial facilities and educational institutions. Freshly renovated Āgenskalna market is only in a 10-minute walking distance from the property, while the green and scenic Victory park - only in a 5-minute walk distance.

The loan target

The loan is intended to continue the construction works of the building, which will include renovating the building’s roof and façade, re-planning, and renovation of apartments, full furnishing of two demo apartments as well as constructing an additional attic floor. 

The additional renovation will include installing a children's playground in the courtyard as well as improvements to the building's heating system, communication network, electricity grid, etc.

Completed works

After the first financing round, the developer has successfully concluded the preparation works for the upcoming construction stages. The construction plan for the facades of the building has been approved by the local authorities, and the technical plans for the third story of the building has been completed.

The unnecessary inner walls and other details have been demolished to fit the newly created technical plans of the building. Additionally, the scaffolding has been installed in the courtyard and construction has started for the building's courtyard facade.

The courtyard has been cleared out of all old wooden sheds that took up most of the space there, and this will allow the developer to store the construction materials and continue the construction works of the facade. 

Upcoming construction works

The second stage financing round will allow the developers to order new, custom wooden windows for the building. Considering the large amount of the windows that will have to be manufactured, the delivery time will take at least 3-4 months.

Also, the scaffolding will be laid out in front of the building, and the renovation of the front facade will be started. In the meantime, the demolition of the old roof will be started and the preparation for the construction of the third floor will be carried out.

Sales of apartments 

All apartments have been evaluated by “Ober-Haus Latvia” one of the leading real estate valuation services in Latvia, defining the sales price for the apartments after completing the renovation of the property. 

The future valuation of the apartment building stands at 2 472 000 EUR (including the storage spaces in the basement of the building and the parking spots located in the courtyard). The forecasted price per square meter for Amālijas Street development project is 1256 EUR. It is planned that the project will be open for apartment reservations at the beginning of 2021.

Amount of the loan

150 000 EUR

Independent valuation of the property

The future valuation of the property after the completed renovation is 2 472 000 EUR.

The Borrower

SIA LP Nami, Reg.No. 42103101592

Security

First rank mortgage

Repayment term

12 months

Repayment of the loan

The principal amount of the investment and the accrued interest will be paid out in a single payment at the end of the repayment term.