New projects

Investor,

When investing, it is very important to divide your investments not only into different projects, and risk ratings but also countries, because such diversification allows you to reduce the risk of the investment portfolio. so we are happy to present even 2 new projects in Latvia that you will soon be able to invest in on the Profitus platform! But before the presentations of the projects, we invite you to familiarize yourself with the Riga housing market, as this will allow you to get to know each other better and evaluate the success of the project.

RIGA HOUSING MARKET OVERVIEW

Market review prepared on the basis of "Cenu banka" and Ober-Haus Latvia 2023 Q1.

At the end of 2022 / the first quarter of 2023, the prices of newly built furnished apartments in the residential micro-districts of Riga were 2,100 / 3,500 EUR / sq.m. The majority of new construction housing transactions took place further away from the city center in Āgenskalns, Dreiliņi, Imanta, Aplokciems, Zolitude, and micro districts, although the largest supply of new projects was in the neighborhoods around the center. As the Euribor rate rises, but mortgage lending does not tighten, more and more buyers are trying to replace their older home with a newer one. According to "Cenu banka" data, 2022 IV. – 2023 Q1 Even approximately 400 new apartment buyers paid the down payments after selling their old real estate.

The rental market for newly built (< 5 years) housing is becoming increasingly active. As in Lithuania, housing rental prices in Latvia rose when the war between Russia and Ukraine began, but this price increase later began to hold due to the development of the popular co-living and student-living segment. Also, currently, there are no managers of long-term rental housing in Riga, so there is a fairly large shadow market influence on prices.

 

"TERRAMISU" RECONSTRUCTION PROJECT IN LATVIA

PROJECT INFORMATION

"Terramisu" is the conversion of a multi-purpose building (former polyclinic) into residential and recreational housing and commercial premises.

 

THE AIM OF THE PROJECT

The project's 9-story buildings will contain apartments that meet the needs of today's customers, from compact one-room apartments to five-room apartments suitable for larger families. Regardless of the housing area, which is between 34 and 103 square meters, the layout of each apartment is designed in such a way that the space is used as efficiently as possible.

The 3- and 5-story buildings of the project will be equipped with studio-type recreation apartments for long-term rent. And on the first floor, there are commercial premises, which will also be rented.

 

INVESTMENT TERMS

The required investment is €3,100,000
Rating - B
Annual interest - 12-15%
Investment term - 12 months.
Location - Riga

PROJECT LOCATION

Rūšu Street 1a is located in the Kengarags micro-district, where the surrounding buildings are significantly lower than Terramisu. A picturesque panorama of the city opens from the upper floors of the building, and a little further away you can see the calm outline of the Daugava River.

The financed project is located near LIDL, RIMI, and MOGO shopping centers, a kindergarten, a school, and a tram stop (200 m away). Also for ~800 m. is the Acropole Riga shopping center.

 

PROGRESS OF THE PROJECT

The project is currently undergoing construction work on the upper floors. New elevators have been installed and the installation of apartments has started, partitions are being installed. Most of the facade work has been completed, and new windows have been installed throughout the building. In the next phase, it is planned to equip other residential premises, commercial premises for rent, solar collectors on the roof, arrange the northern side of the facade and prepare the building for operation.

 

PROJECT OWNER

SIA Būvniecības Partneri is a company whose main shareholder has 40 years of experience in the construction sector. The specialization of the related companies is design, construction contracting, construction of new apartment buildings, and conversion of old commercial buildings to residential use. The group has been operating in Latvia since 2014. Since 2015, he has participated in the construction of 10 apartment buildings, the total area of which is not less than 59 thousand square meters. square meters. This is the first joint project of SIA Būvniecības Partneri and Arco Real Estate on the Profitus platform.

 

SECURITY MEASURES

To ensure the interests of investors, two plots of land with a total area of 9,461 square meters are pledged. m and multifunctional 13,224 sq.m. m. area building, in Riga. After registering the newly formed premises in the project, they will also be mortgaged to investors.

According to the assessment carried out by the independent real estate appraiser of SIA "Arco real estate", the value of the property secured by the primary mortgage for investors is EUR 8,994,000. The future sale price is 17.67 million. euros.

 

DEVELOPMENT OF "SVAROS BROLIAI" TUNNEL CAR WASH IN RIGA

PROJECT INFORMATION

"Švaros broliai", the leaders of car cleaning services that have been operating in major cities of Lithuania for a long time, are expanding their network abroad - in Riga (Mūkusalas gatvė, 100) they intend to install a MAXI tunnel car wash, which will serve up to 220 cars per hour.

 

THE AIM OF THE PROJECT
The owner of the project intends to develop the ProBroMaxi tunnel on part of the land plot (36 acres). 

 

INVESTMENT TERMS

The required investment is €3,100,000
Rating - B
Annual interest - 8-9%
Investment term - 12 months.
Location - Riga

FINANCIAL INFORMATION

In the project, the tunnel car wash will be installed until 100% complete and rented for 36 months. The agreed rental income for the entire period is 1.224 million. euros. The agreed sales revenue of the tunnel car wash is 5.5 million. euros.

 

PROJECT LOCATION

Mūkusalas Street is one of the main streets in Riga, in the suburb of Ziemgala. The street consists of 4 lanes, two in each direction, which are separated from each other. The project site where the tunnel car wash will be developed is located on the site of the former parking lot and has an entrance/exit on both sides of the street.

 

PROJECT OWNER

The group of companies of the project owner has the status of a reliable developer, has been operating for more than 13 years, and is well known in the Lithuanian market. Its subsidiaries have developed ~20 multipurpose real estate projects with a usable area of ~20,000 square meters. Over the past 4 years, in cooperation with "Shvaros broliai" they have implemented or are currently implementing 12 built-to-suit tunnel car wash projects and are building the headquarters of "Svaros broliai". This will be the first project of the project owner UAB KENOVA on the Profitus platform.

 

PROGRESS OF THE PROJECT

Currently, a 50-year continuous lease agreement has been signed with "PRO BRO" Operations LV SIA and a 7-year lease guarantee with UAB "Švaros broliai". Also, "SIA KNVP LV3" after 36 months. has signed a preliminary sale of the company's shares with the company "Plovyklos LT" since the beginning of the operation of the tunnel car wash.

 

SECURITY MEASURES

A plot of land with an area of 5,920 square meters, located at Mūkusalas Street 100, Riga, Latvia, and the future tunnel car wash with all accessories are pledged to ensure the interests of investors. According to the assessment carried out by the independent real estate appraiser of SIA "Latio", the value of the plot of land pledged to investors is 1,650,000 euros. The future sale price is 5,500,000 euros.

 

AN ANALYSIS OF THE LATVIAN DETERGENT MARKET WAS PERFORMED BY "SVAROS BROLIAI".

After the analysis, "Švaros broliai" decided that they will build tunnel car washes in Latvia only in Riga. The main criteria for choosing a location are a busy street or surroundings, good visibility, entrances to the city, or a micro district of 60,000 inhabitants. Larger shopping or business centers within a 10-minute radius. It is planned to build 8 MAXI tunnel car washes in Riga, 6 of which will be built by "KENOVA" group companies. Since there is no concentration in the Latvian market, and the main players are gas station operators, by 2025 Švaros brolaii plans to become a market leader.

 

You will be able to invest in these projects very soon! Follow our social networks and check your e-mail box, because we will inform investors about the launch of these projects.