InRento team is introducing a new buy to let investment opportunity - D11 Warehouses. The investment case consists of two premises located at Daugėliškio str. 11 in Vilnius, Lithuania.
Currently, the properties are rented out and are generating 240 EUR per month of rental income, which results in an 8.23% gross annual rental yield.
The net minimum monthly rental yield is 192 EUR that is distributed to the investors, or in a percentage value equal to 6.58 % per annum net with the given situation of the tenancy.
The net maximum monthly rental yield is 214 EUR that is distributed to the investors, or in a percentage value equal to 7.34 % per annum net with the given situation of the tenancy.
Reasons to invest in the D11 Warehouses project in Vilnius:
UAB „Sandėliukų nuoma“. The company provides warehouses’, underground parking and garages administration services and sub renting facilities.
The tenant will be paying 240 EUR per month for rent and the outstanding new rental contract is valid until 2025-06-30.
The tenant has paid the project owner a 6-month lease deposit. In case of the tenant's insolvency, the deposit would be distributed proportionally to investors.
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 case of the borrower’s inability to fulfil financial obligations would be used to repossess the asset.
Rental income share:
When investing up to 5,000 EUR: 80% of the rental income is distributed to investors (yield 6,58%).
When investing 5,000 - 9,999 EUR: 83.08% of rental income is distributed to investors (yield 6,84%).
When investing 10,000 - 19,999 EUR: 86.15% of rental income is distributed to investors (yield 7,09%).
When investing EUR 20,000 and more: 89.23% of the rental income is distributed to investors (yield 7,34%).
The capital growth distribution:
Rental income (interest)
This project has a 30 days funding period. This project rental yield will be distributed on June's 7th day.
The project owner (borrower):
This UAB „Laisvos erdvės“. This company is a professional in its field, specializing in the rental and administration of warehouses and various premises. You can find more information about this company on their page.
When is it possible to "exit the project"?
When the project is fully funded you will be able to sell your investment on the secondary market. The fee for the secondary market transactions is 2% of the principal value, which is being charged to the seller.
What would happen if the tenants would leave the property?
In a scenario of the tenant cancelling the tenancy, the borrower would be paying a 1% annual interest rate until the new tenant would be found. If the borrower would not rent out the assets within 1 month, the fixed-interest rate would be increased to 6.5% per annum.
What will happen when the property will be sold?
When the property will be sold and it will be sold more expensive than it was acquired. The capital growth will be distributed in the following structure: 70% investors / 20% borrower / 10% InRento. The project owner assumes potential loss if the property is sold at a lower price.
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 tenant.
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||0 / A|
|Borrower's last year's net profit is sufficient to cover the fixed-interest||0 / A|
|Borrower's ability to repay liabilities in the past||0 / A|
|Property price comparison to a 3rd party valuation||1 / B|
|Property type||1 / B|
|Is there a tenant already||0 / A|
|Borrower's experience with rental properties||1 / B|
|Property occupany over the last 2 years (if it was rented)||0 / A|
|Will the property require renovation||0 / A|
|Micro-location||1 / B|
|Years since last renovation of the premises||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)||0 / A|
|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|
|Borrower's Debt / Equity ratio||0 / A|
|Total:||5 / 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.
May 18, 2021
We would like to inform you, that the mortgage on the D11 Warehouses assets has been successfully placed (document is attached in the documents section). The interest for investments will be distributed on June 7.