Real estate management and company “LVR SIA” that is profitably managing several real estate objects in Latvian capital city Riga is planning to launch a new construction project in Marupe, Latvia. The land plot, acquisition and further development of which is planned, is located to the address Gruntes iela 1 in Marupe (cross of Liela and Kantora streets) – one of the fastest growing suburbs of Riga, adjacent to the Riga International Airport and hosting many other business and residential objects. The land plot is located between the main two streets of Marupe near to the Marupe high school and “Spice”, one the biggest shopping malls in Riga, which is only 5 minutes away.
Marupe is located to the south from Riga in 15 km from the Riga center and in 3 km from the Riga international airport that connects the city with 106 destinations around the globe.
The land plot, which is planned to develop has a total area of 7152 m2 and the option to buy also the plot next to it (9825 m2). In only 200 m away from it there are indoor tennis courts and the ice hockey arena. “LVR SIA” is considering purchasing also the second land plot depending on the sales dynamics and overall success of the first project. Marupe is one of the most contemporary districts in Riga and its suburbs. Being close to the biggest airport in the Baltics has a noticeable positive impact on demand of residential and commercial real estate. Modern infrastructure includes the shopping mall “Spice”, local preliminary, sports, and high-school, tennis courts and ice arena, etc. Jurmala, which is the biggest and most popular tourist city with the longest beachline in the Baltics, with the largest aquapark in the Baltic states and many other landmarks, is in ten minutes’ drive by the Jurmala highway.
At the present moment the number of land plots with similar characteristics (location, total area, and possible construction density) in Marupe is highly limited. The investment project is going to be accomplished in two phases:
It is planned to attract an amount of EUR 360,000 for 10 months as co-financing for completing the first stage of the project, which is purchase of the land plot and preparation of it for the construction works.
The total area of the target land plot is 7152 square meters. Maximum allowed construction density is 50% of the total area.
According to the development plan, it is planned to construct two 5 floor medium-class apartment houses following the latest energy-effective and environmental-friendly construction technologies from the high-quality materials. Medium-class new apartments enjoy the highest demand and the supply of such apartments on Latvian market is continuously insufficient.
The approximate area of one 5-floor apartment-house will be 3000-3500 square meters with one apartment area varying from 45 up to 110 square meters. Future apartment owners will be offered different options how to furnish their flats or do it completely on their own. The project includes ground parking and entertainment and recreational area with children playground.
In recent years there has been an increase for economy-class apartments (priced EUR 1,550 per 1 m2) in the new multi-apartment project segment. Last year, 65% of all purchase transactions in new projects were performed in the economic segment. There is active development of new projects in this segment. 2,000 new apartments are currently under construction. Another 3,500 are planned for the next three years, Swedbank notes.
The number of transactions in new housing projects in Riga rose by 31% from a year earlier in the first half of 2019, according to Arco Real Estate. But the total number of apartments offered for sale fell by 13% in July 2019 from the same period last year. Apartment supply in the largest housing estates in Riga dropped 4% over the same period.
Envestio participant’s investment - EUR 1 000.00
Total expected return: EUR 1 151.24Invest in this project
|Project start date||07.11.2019|
|Borrower||“LVR” SIA, Reg. Nr. 40103591799, Latvia|
|Funding Target||€ 360 000|
|Loan Purpose||Financing of acquisition of a land plot and building of apartment houses in Marupe, Latvia|
|Loan Period||10 months|
|Interest Rate||18.1% per annum|
|Repayment of Loan Principal||In full at the end of the Loan Period|
|Investment principal buyback available||Yes, 5% penalty rate|
|Payment of Interest Payments||Monthly, on a specific date|
|Financing type||Secured debt|
|Guarantee from the Project’s owner||Commercial pledge in favour of Envestio Collateral Agent, Personal guarantee|
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