€700M in Loans Financed via European Property Investment Platform EstateGuru

The second month of 2023 “produced the lowest loan origination volume” that EstateGuru has seen “in the last 12 months, with €6.5M worth of loans.”

Despite that, the total historical financed loans via EstateGuru amount “has reached €700.0M, out of which €406.3M has been repaid.”

As in January of this year, Estonia and Lithuania both “accounted for a third of the total volume, followed by Finland and Latvia.” Although there are loan requests from Germany, they are “not taking on new projects from that market, while they instead focus on recoveries.”

February reportedly “saw €6.1M worth of repayments.” The average return “was 7,5% with a total of 67 loans (including stage loans) repaid.”

In Latvia, €0.6M worth of principal and three loan projects “have been recovered with positive returns to investors during the past month.”

Loan project #2501 was “funded in mid-2018 with a default date one year later.” Recovery was delayed “due to a hostile borrower, the liquidation process of the borrower, and the location (border town Valka), but with the help of their external debt collection partner, Conventus, they managed to take over the property and eventually sell it.”

A positive was “that the tenant of the property paid all the costs, and the property was well maintained during all these years.”

Two other projects (Marsa Gatve Bridge Loan and Zvaigznaja Bridge Loan) were funded “in May of 2018 and defaulted in September of 2020.” The assets were “sold at auction, and they managed to cover part of the loans from the borrower’s other assets.”

For more details on this update, check here.

As covered recently, Estateguru, the Pan-European property investment platform, and the Czech investment bank J&T Banka have made an agreement “to fund real estate-backed loans in the Baltics.”

J&T Banka initially “invested €2.5M in Finnish and German loans as part of its continued commitment to funding Estateguru loan origination, which started in September, 2022.”

Now it’s creating additional capacity “in its current fund to support Estateguru’s business plan for 2023, by funding the company’s Baltic loans.”

According to a J&T Banka board member Tomáš Klimíček:

“J&T Banka has identified the Baltic countries as a potentially attractive investment opportunity given the solid historical performance of the Baltic countries’ portfolios and the experience and expertise of the platform in this region.”

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