Early Rental - Karlin - LOT 11

Operating serviced apartments in Prague

Interest
10 % p.a.
Min. investment
1 EUR
Status
Active
Investment goal 100 000 EUR
Invested 66 201 EUR
66% Filled 33 799 EUR left
Early Rental - Karlin - LOT 11 Early Rental - Karlin - LOT 11

Investment information

  • Min term. 12 months
  • Max term. 60 months
  • Collateral value 6,240,000 EUR
  • LTV 73%
  • Location Prague 8, Karlin
  • Developer Vihorev Group
  • Interest payout Bullet / Rental
  • Loan purpose Equity refinance loan
  • Securing Corporate guarantee
  • Project phase In construction
  • Visual materials Overview

Project capital structure

Own equity 1 700 000 EUR
Fintown loan 100 000 EUR
94.4%
5.6%

Honest Karlin

Executive summary

  • Early Rental - Opportunity to Participate in Upcoming Rental Project Under Honest Karlin Brand.

  • This project will transition from Development to Rental one month after the investment.

  • Honest Karlin will begin its operating activities in March-April 2024. By investing in this project, you will receive your first interest payout after 1 month, and your principal will be automatically reinvested in the Honest Karlin Rental with the same interest rate and term starting from 2nd month and you will continue to receive monthly interest payments up to 60 months.

How it works

For the initial one month, the investment operates similarly to a standard Development (Bullet) investment, where interest accrues and is paid at the end of the period along with the principal. However, a distinctive feature of this investment is the guaranteed placement in future rental opportunities.

The investment process is as follows:

  • Investors allocate funds to the Early Rental phase.

  • Once the project is fully funded or reaches its deadline  (whichever occurs first), interest begins to accrue.

  • After one month, investors receive their accumulated interest, as in the standard Development (Bullet) investment.

  • The principal amount is then reinvested into a new Rental project. This project has a minimum term of 12 months, offers an annual interest rate of 10%, and a maximum term of 60 months.

  • For subsequent rentals, interest payments will be distributed on a monthly basis.

Project summary

This investment opportunity represents an opportunity to participate in a property capable of generating short, medium and long term rental income, offering an expected return of 10.00% per annum. This is in addition to an existing bank loan for the purpose of refinancing the borrower's own funds.

The overall minimum term of the project is 12 months, comprising a combination of 1 month (current project) plus 12 months (future Rental).

The property, Honest Karlin, is situated in one of the most frequented areas of Prague, the Karlin District. By March 2024, this four-story apartment building is anticipated to be fully renovated and expanded. Honest Karlin has already seen significant interest, with almost all apartments pre-booked, primarily through the personal database of Honest Apartments, a brand of the Vihorev Group.

Project deadline is 21.03.2024

Product Early Rental

We are introducing this opportunity in response to the high demand for rental projects among our investors. With the Vihorev Group planning to launch this project in one month, we've decided to offer this early investment option. By investing now, you will receive your interest for the first month in a single payment after this period and will continue to earn interest through the Honest Karlin Rental project.

Highlights:

  • Development with Auto-Invest in Rental

  • First Interest Payment in 1 Month, Followed by Monthly Payments

  • No Minimum Goal

  • Accruals start from the investment date

Project description

We are excited to present a unique real estate investment opportunity in the form of a mezzanine loan participation, catering to both short and long-term rentals.

In this venture, Fintown s.r.o. serves as the lender, providing a loan to Vihorev.Investments SE, which is a subsidiary of the well-established VIHOREV GROUP.

The focal point of this project is Honest Karlin, a comprehensive building renovation initiative spearheaded by the Vihorev Group, led by its founder, Maxim Vihorev. Initiated in 2021 and set for completion in March 2024, the project encompasses 31 units. The rental operations will be managed by the SPV Vihorev Management Company s.r.o. With a rich background in real estate, Mr. Vihorev brings to the table his extensive experience as a developer and investor, boasting a portfolio that includes five successfully completed projects covering 7,096 square meters and three ongoing projects spanning 9,225 square meters.

The primary objective of the loan is to partially refinance the equity involved in the project. A key aspect of this project is the investment opportunity in each of the 31 apartments within Honest Karlin. Each apartment is a separate object that provides its own profitability to adequately cover all operating costs and expenses incurred in servicing interest on the loan.


Investment product description

Product

Early Rental

Loan purpose

Loan for equity refinancing

Location of the funded project

Prague 8, Karlin

Borrower

Vihorev Investments SE

Collateral Value

6.240.000 EUR

Senior loan

2.540.000 EUR

Fintown loan

2,000,000 EUR

Borrower equity

1,700,000 EUR

Interest payout

Monthly payout from 2nd month

Start of interest accrual

From the investment date

Max. term of the project

60 months

Project information

  • The Honest Karlin project presents a residential rental opportunity currently under construction in the Karlin neighborhood of Prague 8.

  • This four-story apartment building is undergoing a comprehensive renovation and expansion, elevating it to modern living standards.

  • As of now, the project is in its final stage of development, nearing completion and poised to offer a contemporary living experience in a sought-after area.

Project basic information

Total number of apartments

31

Total amount of leased area, m2

1050

Average area of a leased unit, m2

33

Overview of Commercial Prospects

  • The rental operations for Honest Karlin will be expertly managed by Vihorev Management Company s.r.o.

    We are gearing up for the launch of the apartment rentals in March 2024. The availability of these apartments will be widely advertised on multiple prominent platforms, including Booking.com, Airbnb, Expedia, and Flatio, ensuring a broad reach to potential renters.

    Considering its advantageous location and the exceptional living conditions it offers, we expect the property to achieve and sustain an occupancy rate exceeding 90%.

Estimated Performace

  • Estimated Occupancy 90%

  • ADR 100 EUR

  • RevPar 90 EUR

Financial analysis

Project metrics, EUR

For all 31 units

Collateral Value

6,240,000

Senior Loan

2,540,000

Fintown loan

2,000,000

Own equity

1,700,000

Operating Cash Flow

Estimated annual rental revenue

1,018,350

Estimated annual operating costs

(407,340)

Senior loan annual interest expense

(152,400)

Net Cash Flow (Before Fintown loan)

458,610

Fintown loan annual interest expense

(200,000)

Net cash flow (Total)

258,610

Interest and costs for Fintown investors

  • Commission-free for the use of the Fintown platform.

  • No hidden fees for exiting at any time after min. term. during the project.

  • Interest for Fintown investors is 10.0% per annum.

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