EstateGuru, an online investment marketplace that matches borrowers to investors with secured debt securities, notes that in October 2021, their investors financed a total of 104 loans, “valued at €16.9M.”
Germany, which is EstateGuru’s largest market, “contributed €4.1M, while the largest volume was in Estonia (€6.1M),” the announcement noted.
Along with the sales volumes, the repayment of loans significantly increased compared with figures from September 2021, to a total of €8.8M. Investors’ return on repaid loans “has remained high at 10,4% for October,” the update from EstateGuru revealed..
As mentioned in a blog post by the online investment platform, the default rate is “still stable at around 8%.” A considerable default increase “occurred in Finland, where one project was put into default (€1.5M).”
A defaulted project repayment was “successfully concluded in Estonia (€0.2M) as well,” the update from EstateGuru noted while adding that one successful auction was “completed in Estonia at the beginning of November, and we expect the payment to investors (a claim amount €1.2M) to be finalized during the first week of December, at the latest.”
As noted in the blog post by EstateGuru, the buyer will “finance the purchase with a bank loan.” A new risk management attorney has “been hired to support [the platform’s] debt management in all of the countries in which we operate,” the announcement revealed. She will be based at the firm’s head offices in Estonia.
The announcement from EstateGuru further noted that the second principal capital loss was “registered at the beginning of November and the total write-off of the principal was €0.03M.” A bridge loan of €0.09M in Latvia was “declared defaulted in October of 2019,” the update noted.
The price “reached at auction was too low, so we attempted to claim the missing amount from the suretyship giver,” the announcement revealed.
EstateGuru’s blog post also mentioned that this was “unsuccessful, as he went into bankruptcy. Partial repayment was received from the related company of the borrower, but ultimately they also filed for bankruptcy.”
As mentioned in the update, “no future payments are expected” and their 344 investors (with an average investment of €247) “saw a loss on their investment.” Meanwhile, 66.7% of the principal was “recovered and the total return for investors was -23.9%.”
As stated in the report:
- Total financed loans since 2014 – 456.1 Million Euros
- Total Repaid loans since 2014 – 261.8 Million Euros
- Total outstanding portfolio – 194.2 Million Euros
- Total outstanding defaulted loans – 16.2 Million Euros
They also confirmed:
- Total number of outstanding defaulted loans – 89
- Default Rate (Outstanding loans) – 8.4%
- Default Rate (total Financed loans) – 3.6%
- Total amount of Recovered loans – 13.0 Million Euros
- Total number of Recovered loans – 84
- Average return rate of recovered loans – 9.4%
- Average time from default to recovery – 9.4 months
- Write-off rate (total financed loans) – 0.009%