EstateGuru Loan Origination Volume Rises, with €7M of Loans Provided in March 2023

In March 2023, the loan origination volume via EstateGuru reportedly “grew compared to February, with €7.0M worth of loans.”

According to EstateGuru, the most active market “was Estonia (€3.1M), followed by Lithuania (€1.9M) and Finland (€1.2M).”

In March, the loan origination volume via EstateGuru grew “compared to February, with €7.0M worth of loans.” The most active market “was Estonia (€3.1M), followed by Lithuania (€1,9M) and Finland (€1.2M).”

Repayments in March “amounted to €7,5M, with a total of 62 loans (including stage loans) repaid.”

The average return “increased to 9.3%, from 7.5% in February.”

As mentioned in a blog post, two projects, “with a total principal amount of €0,3M, were recovered during the last month.” One of them “was in Finland (a compromise with the borrower, who refinanced, was reached) and the second was in Estonia, where collateral which we had taken over was sold at auction.”

By the end of April the platform investors “will also receive the final recovery payments relating to the Tolli 7 bridge loan, which defaulted in March of 2018, leading to legal disputes with a hostile borrower.”

A compromise which “included ending all the court proceedings, was suggested by the borrower after years of consistent legal work by our security agent.”

As covered, EstateGuru, an online investing and originating platform that serves the European market, is reporting a “stable and success” first quarter of the year. Estategura says it funded 178 projects with a loan volume of €23 million and hitting a new milestone of over €700 million in financed loans.

At the same time, approximately 3235 new investors joined the platform.

CEO of EstateGuru, Mihkel Stamm, said they see that the real estate market in the Baltic states is revived. He added that developers, buyers nad investors are becoming more active. Stamm said he is “optimistic about the market’s development prospects, but that it will still take time to return to the volumes of a few years ago.”

The rising interest rate environment has boosted activity on Estateguru deliving higher returns for investors.

“Last year, the average annual return of our investors was 8.62%, while the corresponding figure for the first quarter of this year was already 9.56%,” said Stamm.

Estateguru’s assets under management are reportedly €295 million at the end of Q1 2023, which is 16% more compared to the previous year.

A total of over 156,000 investors have joined the Estateguru platform since its launch, financing loans secured by real estate for more than €700 million.


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