Online investment and financing platform Estateguru is reporting having topped €500 million in loans in the Baltics.
EstateGuru is an investment platform that enables individual investors to participate in secured loan offerings. The peer to peer platform launched in 2014 enabling property developers to borrow money while investors generate returns on short-term property-backed loans. EstateGuru reports that of the €500 million €344 million has been successfully repaid, with the balance of €159 million being outstanding portfolio. The breakdown by country is as follows: Estonia €288 million, Lithuania €126 million, and Latvia €88 million.
Overall, EstateGuru has funded just under €700 million in loans.
Mihkel Stamm, CEO of Estateguru, said that the Baltics is their most established market where bank financing is exceptionally conservative. At the same time, they have established a good working relationship with several banks to offer their services to their customers.
“We pioneered this business nine years ago and have accumulated a wealth of experience in the financing process. We continue to see opportunities to grow our financing volumes in the Baltics, as these are markets with huge potential for economic growth. Reaching this significant milestone is the perfect start to 2023 and sets the tone for the year ahead.”
Beyond the Baltics, EstateGuru also offers loans in Germany, Finland, Sweden, Portugal and Spain.
The average size of a loan is €135,406, with an LTV of just under 60%. Historical returns have averaged over 10%. While 14.12% of loans are in default, the platform reports a strong recovery with just 0.01% of loans written off.