Operating serviced apartments in Prague
Loan issued to refinance equity in form of Mezzanine, subordinated to Senior Loan.
Project operating successfully since 2019 with consistent rental income flow. Interest paid from net cash flow generated from apartment rentals.
Secured by Corporate Guarantee.
Investment opportunity in an operating property that generates short-term rental income, with an expected return of 10.00% per annum.
Developer has listed 1 unit out of 26 on the Fintown platform in order to secure a mezzanine loan, in addition to an existing bank loan, to refinance their own funds.
The property, Honest Smichov, is located in the heart of Prague 5's Smichov District. Seven-story apartment building has undergone a complete renovation and expansion, completed in 2019. Honest Apartments has been consistently generating rental income for over three years, primarily through the Booking platform.
All 26 units will be placed as separate projects, providing multiple investment options.
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We are pleased to offer a real estate investment opportunity in the form of a mezzanine loan participation for short and long-term rentals.
Lender, Fintown s.r.o., is extending a loan to Vihorev.Investments SE, a subsidiary of the VIHOREV GROUP.
Honest Smichov, is a building renovation initiative undertaken by the development company, Vihorev Group, founded by Maxim Vihorev. Project was implemented between 2017 and 2019 and currently comprises 26 units, all of which are fully rented out through Booking.com. Rental income is managed by operating company, SPV Vihorev Management Company s.r.o. Mr. Vihorev is a seasoned real estate developer and investor with an impressive portfolio of five successfully completed projects with a total area of 7,096 square meters and three ongoing projects with a total area of 9,225 square meters.
It is important to note that the mezzanine loan is not intended for the purpose of completing construction, thus the investor-participant does not assume the risk of realizing the construction.
Loan's purpose is to partially refinance the equity. As part of the project, one of the 26 apartments within Honest Smichov will be placed for investment, and in total, 26 separate projects for each apartment are planned. Each apartment is a separate object of the credit relationship and has its own profitability to cover all costs associated with operating activities and the cost of paying interest on loans.
Investors can expect to receive interest payments on a monthly basis throughout the life of the project.
Product | Rental |
Loan purpose | Loan for equity refinancing |
Location | Prague 5, Strakonicka |
Borrower | Vihorev Investments SE |
Collateral Value | €187,977 |
Senior loan | €111,026 |
Fintown loan | €28,914 |
Borrower equity | €48,037 |
Minimum investment | 50 EUR |
Interest payout | Monthly |
Start of interest accrual | The day after investment |
Max. term of the project | 60 months |
Honest Smichov project is a residential rental opportunity located in Prague 5, Smichov neighborhood.
Seven-story apartment building has undergone a comprehensive renovation and expansion, with the addition of an approved extension in 2018. Each floor of the building features a variety of apartment types, including 1+kk studios, 2+kk apartments, and 2+1 apartments.
To date, a total of 26 fully equipped and furnished apartments have been rented out, and are available for both short-term and long-term rentals.
They can be found on the Booking.com website under the name "Honest Apartments".
Rental program was launched in June 2019.
Project basic information
Total number of apartments | 26 |
Total amount of leased area, m2 | 965 |
Average area of a leased unit, m2 | 35 |
Rental operations for Honest Apartments are managed by SPV Vihorev Management Company s.r.o.
Apartment rentals launched in June 2019 and now available on multiple platforms, including Booking.com, Airbnb, Expedia, and Flatio.
Property has received outstanding reviews from guests, with an average rating of 9.1 out of 10 based on over 2000 reviews.
Honest Apartments has established a reputation for excellence in the industry.
Apartments in popular Smichov district in Prague are always in demand - making it a great investment opportunity!
The following highlights further demonstrate this:
Average annual apartment occupancy of 91%, among the highest in Europe.
Consistent demand throughout the year, with minimum dependence on seasonality.
Consistent 67 EUR ADR (average daily rate) reflects the stability of the inflow of funds and the economic attractiveness.
Month | Occupancy % | ADR, EUR |
January 2022 | 69,35 | 45,58 |
February 2022 | 89,56 | 40,7 |
March 2022 | 94,42 | 45,16 |
April 2022 | 97,44 | 65,98 |
May 2022 | 93,8 | 70,82 |
June 2022 | 93,33 | 72,32 |
Jule 2022 | 94,67 | 73,42 |
August 2022 | 97,15 | 75,83 |
September 2022 | 94,36 | 77,25 |
October 2022 | 96,65 | 78,85 |
November 2022 | 84,1 | 66,96 |
December 2022 | 92,43 | 89,35 |
Total Average 2022 | 91,44 | 66,85 |
Investment opportunity involves the phased placement of each of the 26 apartments within Honest Smichov on Fintown platform as separate projects.
This provides multiple investment options for interested parties.
Project metrics, EUR | For all 26 units | Apartment #1 |
Collateral Value | 5,500,000 | 187,977 |
Senior Loan | 3,100,000 | 111,026 |
Fintown loan | 1,000,000 | 28,914 |
Own equity | 1,400,000 | 48,037 |
Operating Cash Flow | ||
Estimated annual rental revenue | 660,000 | 24,426 |
Estimated annual operating costs | (240,000) | (8,880) |
Senior loan annual interest expense | (156,000) | (5,772) |
Net Cash Flow | 264,000 | 9,774 |
Net Operating Income (NOI) | ||
Net Cash Flow | 264,000 | 9,774 |
Fintown loan annual interest expense | (99,996) | (3,470) |
NOI | 164,004 | 6,304 |
Commission-free for the use of the Fintown platform.
No hidden fees for exiting at any time during the project.
Net income for Fintown investors is 10.00% per annum.
Capital structure
| Amount, EUR | Share, % |
Senior loan | 111,026 | 59 |
Fintown mezzanine | 28,914 | 15 |
Skin in the game | 48,037 | 26 |
Total | 187,977 | 100 |
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