Closed for investment
The mortgaged property is a three-bedroom apartment on the third floor of a four-story, newly-constructed residential building 'Villa 21' in Jurmala, Latvia. The building is situated in an exclusive area in Bulduri, in near proximity to the Baltic Sea.
The apartment has a total area of 147.9 sq. m., including an outdoor area of 25.2 sq. m. There are 3 rooms in total, 2 of which are isolated rooms. It is on the middle floor of the building and the windows face the sea and the courtyard. The building has a locked staircase and an elevator.
Bulduri is part of Jurmala city, a popular destination among Latvians and tourists. Jurmala is the largest resort town in the Baltic States and is known for its white-sand beaches, spas, and architecture. The city is a popular vacation destination for both Latvians and tourists from other countries, and it offers a range of quality and high-end accommodation options, including hotels, guest houses, and rental apartments. The resort is known for its natural beauty and recreational opportunities, as well as its exclusivity as a luxury vacation destination. It is situated about 20 kilometres west of the Latvian capital, Riga, and is easily accessible by car or public transportation.
The borrower - company SIA «Pure Water» has been a supplier of drinking water and beverages on the Latvian market for 13 years, offering the products of many European suppliers.
From 2021, the company cooperates with the Portuguese manufacturer Laboratorio Francediet – Fabrico de Produtos de Dietética, Lda. supplying its products to the Latvian market. SIA «Pure Water» has become a distributor of Lev (healthy food complexes) products.
With the help of the received loan, a network of stores of the Lev® brand will be opened both in Latvia and Switzerland.
As part of the project, 1 store will be opened in Riga, 1 in Geneva (Switzerland) and 2 in Zurich (Switzerland). Internet stores will also be opened in Latvia and Switzerland.
The overall agreement amount for the loan is 375,000, which will be funded in several stages. Each stage will amount to approximately 50,000 euros and will be paid out to the borrower in instalments. The overall LTV for all stages could reach 50%.
The loan will be repaid from business earnings or the sale of the apartment.
Despite the impact of COVID-19 on the economies of Latvia and Europe as a whole, the real estate sector in Latvia and Jurmala has developed relatively successfully, with certain segments
such as individual housing land, private houses, and new apartment projects showing an increase in both the number of transactions and average prices, while the average price of apartments slightly decreased mainly due to a decrease in the proportion of expensive apartments.
The financing will be used for the borrower's company to open four stores - one in Riga, one in Geneva, and two in Zurich.
Amount of the loan
55 000 EUR
Independent valuation of the property
771 000 EUR
SIA 'Pure Water', Reg. No.40103210704