In August 2021, investors remained quite active on European online investment platform EstateGuru and financed a total of €17.0M worth of loans (84 loans). As expected, the top-performing markets on EstateGuru this past month were Estonia and Germany, with loan volumes of €5.3M and €6.9M, respectively.
The repayment level remained relatively high on EstateGuru and a total of €12.6M worth of loans “were repaid during August at an average return of 10.8%.”
As mentioned in the monthly loan portfolio overview report from EstateGuru, the default rate “continued its downward trend – with the partial repayment of €0.4M of one Estonian project (the same amount is expected by the end of the year to fully recover the loan) and full repayment of another small Estonian loan (€0.04M).”
The report further revealed that they registered their investors’ “first-ever principal capital loss at the beginning of September and the total write-off of principal was €0.01M.” The report also noted that a development loan in Estonia in the amount of €0.13M was “declared defaulted in January of 2019 and we sold the collaterals from the bankrupt estate in October of 2020.”
As stated in the update:
“Due to various costs related to the bankruptcy process (taxes, bankruptcy administrator’s fee and statutory partial distribution of proceeds with other creditors), our 302 investors (with an average investment of €430) received a loss on their investment. The amount repaid to the investors’ accounts equals 90.9% of the initial principal amount. Our debt collection partner is collecting the remaining claim from the suretyship giver.”
The report added:
“We have made progress in Sweden and Finland where we have received offers to sell the claims of three defaulted projects. Negotiations are ongoing and we are planning to close the transactions hopefully by mid-October.”
The EstateGuru team added that they’ll keep clients informed about the credit portfolio quality “on a monthly basis.”
As stated in the report:
- Total financed loans since 2014 – 422.4 Million Euros
- Total Repaid loans since 2014 – 247.8 Million Euros
- Total outstanding portfolio – 174.6 Million Euros
- Total outstanding defaulted loans – 14.2 Million Euros
They also confirmed:
- Total number of outstanding defaulted loans – 91
- Default Rate (Outstanding loans) – 8.2%
- Default Rate (total Financed loans) – 3.4%
- Total amount of Recovered loans – 12.1 Million Euros
- Total number of Recovered loans – 71
- Average return rate of recovered loans – 10.0%
- Average time from default to recovery – 7.7 months
- Write-off rate (total financed loans) – 0.003%