InRento is proud to introduce the first buy to let investment opportunity by a regulated platform in Continental Europe. The investment case is comprised of 2 Rental properties that are located in the central area of the city in the address of A. Goštauto g. 8, Vilnius.
Currently, both of the properties are rented out and are generating a total of 554 EUR per month of rental income. Current absolute yield is 554 EUR per month, which results in 9.44% gross rental yield.
The net rental yield is 443.20 EUR for the distribution to the investors, or in a percentage value equal to 7.55% per annum NET with the given situation of the tenancy.
Reasons to invest in 2-micro offices in Vilnius:
Office #223 (which consist of 13,76 square meters area) is rented out to a company which is working in the logistics industry. The tenant is paying 260 EUR per month for rent and the outstanding rental contract is valid until 2021 09 30.
#224 (which consist of 17,94 square meters) is rented out to a company working on Cars parts imports. The tenant is paying 294 EUR per month for rent and the outstanding rental contract is valid until 2021 02 17.
Financial terms of the investment:
InRento investors are granting a loan to the borrower for the acquisition of the rental properties. The loan is secured with a first-charge mortgage which in time of borrower’s inability to fulfil financial obligations would be used to repossess the asset.
The revenue-share between the borrower and the investors is set at 80/20, meaning that the borrower is obliged to distribute 80% of the income to the investors. Current absolute yield is 554 EUR per month, which results in 443.20 EUR distribution to the investors, or in a percentage value equal to 7.55% per annum with the given situation of the tenancy.
What would happen if the tenants would leave the property?
In an unlikely scenario of both of the tenants cancelling their tenancy, the borrower would be paying a 1% annual interest rate until the new tenants would be found. If the borrower would not rent out the assets within 3 months, the fixed-interest rate would be increased to 4% per annum.
What will happen when the property will be sold?
When the property will be sold and it will be sold more expensive that it was acquired. The capital growth will be distributed in the following structure: 70% investors / 20% borrower / 10% InRento.
The project owner:
The borrower - UAB Real Assets, is a newly established legal entity to serve as a special purpose vehicle for a purpose of increased security for the investment. The manager of this company has been working in the Real Estate industry for the last 15 years. He has successfully commercialised residential, commercial and hospitality projects internationally and counts numerous successful sales of companies operating in the real estate industry.
Key investment risks:
Risk of falling prices: the price of the property might fall due to the increase in supply or decrease in demand in the area or other economic factors.
Liquidity risk: The borrower might be unable to find a buyer in order to sell the property.
Tenant risk: Although the assets currently are fully rented out, there is a risk that the asset can lose the Tennant and it can take time in order to find the new tennant.
Investing with InRento, is similar to owning a rental property, however with us you don't have to worry about day-to-day property management and in the periods of vacancy the borrower is required to distribute fixed-interest payments.
|Borrower's equity exceeds the amount of financing needed||1 / B|
|Borrower's last year's net profit is sufficient to cover the fixed-interest||1 / B|
|Borrower's Debt / Equity ratio||2 / C|
|Borrower's ability to repay liabilities in the past||-1 / A+|
|Property price comparison to a 3rd party valuation||1 / B|
|Property type||1 / B|
|Is there a tenant already||0 / A|
|Additional point: if the tenant has paid on time during the tenancy||-1 / A+|
|Borrower's experience with rental properties||0 / A|
|Property occupany over the last 2 years (if it was rented)||0 / A|
|Will the property require renovation||0 / A|
|Micro-location||0 / A|
|Years since last renovation of the building||0 / A|
|Does the property have elevator if it's not ground floor?||1 / B|
|Does the property have dedicated parking slot near premises? (long-term rent)||1 / B|
|Does the property have security? (for commercial)||0 / A|
|Property has been for sale for less than 1 year?||0 / A|
|Property has all applicable certificates/zoning rights with at least 2 years before expiry date||0 / A|
|Total:||6 / B|
*InRento Risk rating is of an informative nature only and can not be considered investment advice. InRento is licenced and regulated by the Bank of Lithuania.
December 29, 2020
We would like to inform you, that the mortgage on the asset has been successfully placed by the project owner and your investment is generating the return. The project owner will be distributing interest every month's 10th day.
If you have any questions, do not hesitate to contact us at email@example.com or call us at +37069347427.