Funding for "Ciprese"

Loan

• Amount €6,100.00
• Interest rate 10%
• Term 23m
• Collateral type Land
• LTV 47%

Description

This project gives LANDE investors an opportunity to provide an agricultural loan secured by a first-rank mortgage on the real estate “Zvaņi”, Valgundes pag., Jelgavas nov.  in the amount of € 6 100 for farming company Z/S ”Ciprese” (40001017004), to receive loan for purchasing of additional greenhouse for growing vegetables. Price of the greenhouse: EUR 8000. "Ciprese", is a farming company engaged in vegetable growing and selling since 2012.

For this loan annual interest is 10%, LTV 47 %, loan term: 24 months, with a monthly manner of interest and principal payments.

The collateral consists of a land plot with an area of 2,6 ha agricultural land. To secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 12 200,00 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 € 13 000 subsequently making loan to collateral value ratio (LTV) – 47 %.

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 € 5000 – 8000 EUR per ha.

Documents

• Market review of "Zvaņi", Valgundes pag., Jelgavas nov.