"Rozes", Livanu region

Beschreibung

This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by a first rank mortgage on the real estate “Rozes”, located in Turku parish, Līvānu region. The funding target for this project is € 16 952.15, which will be used in order to refinance an existing business loan and obtain additional capital for business development.

This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 35%, loan term of 24 months, with monthly manner of interest payments and full repayment of the principal at the end of the loan term.

The collateral consists of a land plot with a total area of 34 ha, from which 18.6 ha is agricultural land and 11.5 ha – forest land. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 33 904,30 will be registered on the collateral in the Land Register of Latvia. Aside from the mortgage, the collateral is debt free.

The current market value of the collateral is estimated at € 48 790 subsequently making loan to collateral value ratio (LTV) - 35%.  Even upon a forced sale, estimating that the real estate will be sold for 30% lower than the market value (€ 34 153), LTV will not exceed 50%.

The demand for agricultural land currently in Latvia exceeds supply and 25% of farmers are forced to rent the land, as there is none available on the market. The price of agricultural land plots in the parish of the collateral ranges from € 1 300 EUR per ha to € 1 850 per ha. The average price of forest land keep increasing, on average being € 2 140 per ha.

The Borrower is self-employed in agricultural sector and is engaged in dairy farming. The Borrower obtained the initial loan, which is now to be refinanced, in 2019, for the purchase of machinery. The additional funds will be used in order to purchase cattle and expand the farm.

Borrower aims to repay the loan from incoming business revenues.

Sicherheit

• Land Latvia, LV
• Sicherheitstyp Land
• Wert der Sicherheit €48,790.00
• Beleihungsquote 35%
• Grundschuld first Rang