S12, Vilnius

Vilnius
Available for funding:  €0
€119 000
€119 000 goal
36 investors

The annual return indicates the fixed-interest rate, or what investors shall earn in percentages.

Expected Return:
7.21%

The annual return indicates the fixed-interest rate, or what investors shall earn in percentages.

Actual Return:
8.8%

These numbers reflect the data about investments of InRento and companies InRento acquired and merged with.

Months Expected:
60

These numbers reflect the data about investments of InRento and companies InRento acquired and merged with.

Actual Months:
19

InRento team is introducing a new buy to let investment opportunity - S12, Vilnius. The investment case consists of modern office space located in the near center of Vilnius, Sporto str. 12.  

In 2021, the premises were divided and renovated. The final installation of the premises is currently being completed. These premises will be rented as separate offices, thus ensuring the needs of tenants and achieving a higher return on rent to investors. 

During the financing of the project, the project owner will additionally invest in the installation of the premises, thus increasing their value. The premises consist of two cabinets and a bathroom. 

As the premises currently don’t have tenants, the project owner undertakes to pay investors 7% annual interest until the premises are leased. The project owner also ensures a minimum annual net rental yield of at least 6.5% to the investors.

Reasons to invest in the S12 project in Vilnius:

  • The attractive and growing area in Vilnius;
  • The premises were renovated in 2021; 
  • Investors are guaranteed a net rental yield of at least 6.5%;
  • Independent valuer valued the premises at 120,000 EUR.

Capital growth change:
 
The prices of these types of premises in this district of Vilnius increased +83,6% in the last five years. 
 
Source en.aruodas.lt
 
The tenant:

The terms of the new rent agreement are currently being negotiated. The project owner ensures a minimum annual net rental yield of at least 6.5% to the investors.

Financial terms of the investment:

  • Maximum term: 60 months (5 years)
  • Rental income share: 85% investors / 15% borrower
  • Minimum net rental yield for investors: 6.5%
  • Fixed-interest rate: 2%
  • Increased interest rate: 7%
  • Security: 1st charge Mortgage


InRento investors are granting a loan to the borrower. The loan is secured with a first-charge mortgage which in case of the borrower’s inability to fulfill financial obligations would be used to repossess the asset. 
The revenue-share between the project owner and the investors is set at 85/15, meaning that the borrower is obliged to distribute 85% of the income to the investors.

The capital growth distribution: 

  • Investors: 45% 
  • Borrower: 45% 
  • InRento: 10%
     

When investing: 

15,000 - 29,999 EUR - the capital growth will be distributed in the following structure: 50% investor / 45% borrower / 5% InRento.

30,000 EUR and more - the capital growth will be distributed in the following structure: 55% investor / 45% borrower.

Rental income (interest) 

This project has a 60 days funding period. This project rental yield will be distributed on July 10th and August 10th day even if the project would not be fully funded. 

The project owner (borrower):

UAB ‘’Nebas’’ is a growing and profitable personal investments company. The company manager - Nerijus Baliūnas - has more than 8 years of management experience, has launched and sold his company, and has been active in investment activities for over 7 years. N. Baliūnas works in the ‘’Business Angels Fund II’’, which owns up to 3% of the holding company of UAB ‘’InRento’’.

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 2% annual interest rate for the first 3 months of vacancy. If the borrower would not rent out the assets within 3 months, the fixed-interest rate would be increased to 7% per annum.

What will happen when the property will be sold?

When the property will be sold and it should be sold more expensive than it was acquired the capital growth will be distributed in the following structure: 45% investors / 45% 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: The property may lose tenants and it may take time to find new tenants.

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 as the borrower is required to distribute fixed-interest payments.
 

2023-01-25

We would like to inform you that the project – S12, Vilnius - has been successfully realized!

The average annual return on monthly interest was 7.03%.

Investors have generated annual returns of 1.77% from capital gains.

Annualized ROI to investors from this project is 8.8%
 

 

2022-05-31

Dear Investors,

We would like to inform you that the project owner is planning to change the layout of the premises, and therefore will not be renting part of the premises for some time. Because of this, only part of rental return would be generated for some time.

We have reached an agreement with the project owner that as of June the project owner will pay only fixed interest of 7.21% to the investors instead of fixed plus variable interest (which depends on rental income). Considering the early returns generated by the project, this agreement is more advantageous for the Investor as the average return rises from 7.07% to 7.21%.

In addition, in June each year, this fixed interest will be indexed to the EU inflation rate - CPI.

The amendment of the terms of the contract is attached among other project documents.

If you have any questions, do not hesitate to contact us at info@inrento.com or call us at +37069347427. InRento team

2022-04-06

We would like to inform you that the tenant of project S12, Vilnius has terminated the rental contract starting from July 1st, 2022. Until then the tenant is going to continue paying rent. 

If you have any questions, do not hesitate to contact us at info@inrento.com or call us at +37069347427. 

InRento team

2021-08-26

Dear Investors,

We would like to inform you, that the project owner has successfully concluded a rental agreement with a US publicly listed company. The rental contract term is 2 years, the tenant is now transferring 2 months rental deposit. Once the property will be furnished, the tenant will begin paying the monthly rent of 825 EUR.

This means, that the net rental yield for the investors for this project will be 7.07%.

If you have any questions, do not hesitate to reply to this update or send us an email at info@inrento.com 

2021-07-01

We would like to inform you, that the mortgage on the S12 assets has been successfully placed (document is attached in the documents section). 

If you have any questions, do not hesitate to contact us at info@inrento.com or call us at +37069347427

InRento team