Estateguru says that they saw €9.4 million in loan repayments in November, with an additional €1.3 million coming from recovered loans.
As noted in a blog post by Estateguru, the total returns amounted to €1.1 million, “with an average return rate of 8.99%.”
Estateguru has reportedly “originated €7.4 million worth of new loans.”
November’s repayments came “mostly from loans in Estonia and Lithuania. In recent months our loan repayment rate has been steadily increasing, but in November the repayment amount was lower when compared with the previous 4 months.”
Estateguru also mentioned that in the last 6 months, “an exceptional amount of €73.3 million was repaid and €10.8 million recovered from defaulted loans, amounting to €85 million in total.”
As revealed in the report from Esateguru, loan origination numbers “remain stable in November. We originated €7.4M worth of loans, mostly in Estonia and Lithuania.”
Estateguru further noted that the new loans “all meet the criteria outlined in our enhanced credit policy, and they have all received a grade of B or higher according to Moody’s Analytical Assessment.”
For insights into their recovery process, you may check out their German Loan Update: November, 2023 (found on the firm’s official website).
Estatgeguru added that they will keep you informed about the credit portfolio quality.
In another recent update, Estateguru provided some of the details regarding the recent, full repayment of “a prolonged loan” in Finland (#6445 Development loan).
The firm says they hope this will give you some insight into why they “sometimes elect to prolong loans, as part of our commitment to seeking to ensure the optimal outcome for both our borrowers and investors in every case.”
- Loan Project: #6445 Development loan
- Stages: 12
- Outcome: 5.3 Repaid (€1.43M in interest and indemnities)
- Average return: 12.1 %
As explained in a blog post by Estateguru, the project involved “the acquisition and complete renovation of an apartment building originally built in 1955, in a park near the Sipoo River. The buildings in the area were built in the early 20th century. Many of them were originally hospital buildings, constructed in the Art Nouveau (Jugendstil architecture) style. The building was to be transformed into 71 apartments. The borrower has a long and highly successful track record in developments of this kind, spanning over thirty-five years.”
The first stage loan of €1,500,000 was funded on 24.2.2021. The purpose of the loan was for the “acquisition of the property and its reconstruction into an apartment building with 71 apartments.”
The total loan for the project “was €5,300.000, which was gathered in stages as the construction works progressed.”
Due to factors relating to Covid, supply issues, documentation and the departure of the original constructor halfway into the process, the project “experienced multiple delays.”
After careful due diligence and multiple conversations with the borrower, who continued to pay fees and interest throughout, they decided “to prolong the loan, as they still believed in the project and the potential returns for their investors.”