In November 2024, Estateguru, a platform specializing in property-backed financing, credited more than €11 million in repayments to its investors.
According to Estateguru, a notable portion of this, more than €4.2 million, came from successfully recovered loans that had previously “been delayed. Investors earned €1.01 million in interest income during the month.”
Mihkel Stamm, CEO of Estateguru, on the November results:
“Our active portfolio from the past two years is performing well, with over 75% of loans issued in 2023 already repaid to investors along with interest.”
He also highlighted the success in resolving overdue projects, stating:
“In November alone, we managed to recover more than €4.2 million for our investors.”
In terms of new projects, investors funded property development loans totaling “€7.2 million in November.”
The largest contributions came from Estonia with “€3.1 million, Lithuania with €2.2 million, and Latvia with €1.5 million.”
Stamm noted:
“For the first time in a while, we are seeing optimistic signals in the property market. Interest in our financing solutions has clearly grown among real estate developers across all three Baltic countries, particularly in the final quarter of the year, as evidenced by the rapid increase in applications in October and November.”
November also marked a significant milestone for Estateguru.
Over the past decade, the platform has facilitated the financing of real estate projects worth more than “€850 million, while investors have collectively earned €86 million in returns.”
Additionally, €51.3 million of non-performing loans have “been successfully recovered, with these loans achieving an average return of 7.6%.”
As covered last month, Estateguru noted that a new law expands options for Estonian investors to use investment accounts for crowdfunding.
According to a blog post by Estateguru, the legislative amendment passed in the Estonian Parliament last week will now allow the “use of investment account funds for crowdfunding.”
This opens a new avenue for active investing, particularly for “small” investors, says Estateguru Chief Executive Officer Mihkel Stamm.
According to Mihkel Stamm, this change, which places crowdfunding alongside more traditional investment instruments, has been “long-awaited by many.”
Stamm added that this decision also reduces the pressure on investors “to manage their investments through private limited companies.” They also noted that it simplifies active investments in “various instruments with smaller sums, allowing investors to better manage the inherent risks of investing.”
He further explained that on the Estateguru platform, for instance, investments can start from “as little as €50, secured by a first-rank mortgage on the collateral property.”
He added that investment through an investment account is only possible via licensed crowdfunding platforms, of which there are currently two in Estonia.
