The “InRento“ team is introducing a new buy to let investment opportunity: S7, Vilnius. The investment offer consists of commercial premises located in the central part of the city, at Švitrigailos str. 7, Vilnius. These 249.51 m² premises are located in one of the most promising districts of Vilnius - Naujamiestis (Newtown).
These premises have existing rental agreements with six different companies. The project owner plans to fully renovate the interior of the property.
"Mikrobiurai" (project owner) - the manager of the company, is Linas Ginaitis, who specializes in the sale of residential housing, lofts, commercial property, and land plots. Linas Ginaitis also has experience in developing massive residential plots and micro-lofts/ micro-offices projects.
The project owner will pay a fixed annual interest (as a rental return) to investors. The annual interest rate: 7.5-8% depends on the amount invested (more information below). This project also has a fixed percentage of capital gains. Investors are guaranteed a 2% return on capital gains per year, which raises the overall return on the project to at least 9.5% per annum.
The loan term is 36 months.
Reasons to invest in the project S7, Vilnius:
Financial terms of the investment:
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 capital gains are fixed and payable together with the repayment of the loan amount for the preceding instalments ("Instalment"), with the return for each successive Instalment being added to the calculation of the return. The Instalment shall be considered as per one calendar year. A fixed increment of 2% shall be applied to the Instalment.
Example calculation: If the Loan is repaid after one year, a fixed return of 2% applies. If the Loan is repaid after two years, a fixed return of 4% applies. If the Loan is repaid after three years, a fixed return of 6%. The profit margin is payable whether or not the Loan is repaid on sale of the property.
Up to 4999 € - the annual return is 7.5% + 2%.
5000 € – 14999 € - the annual return is 7.6% + 2%.
15000 € – 29999 € - the annual return is 7.7% + 2%.
30000 € – 49999 € - the annual return is 7.85% + 2%.
50000 € and more - the annual return is 8% + 2%.
Rental income (interest):
Rental income (interest) is paid to investors on a monthly basis (on the 25th day of the month). If the 25th day is a non-working day, then the next working day.The interest will be paid out the next month on the 25th after the mortgage is placed. The interest is calculated after the mortgage is being placed.
The project owner (borrower)
MB “Mikrobiurai“ - is a company serving as a special vehicle for “InRento“ investments. The CEO of the company is Linas Ginaitis, who specializes in the sale of residential housing, lofts, commercial property and land plots. Linas Ginaitis also has experience in developing massive residential plots and micro-lofts/ micro-offices projects.
Frequently asked questions
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 charged to the seller.
Yes! No matter what is the situation with the tenancy, the project owner is obliged to distribute fixed-interest to the investors.
When the property is sold at a higher price than it was acquired, the capital growth will be distributed among investors, project owner and InRento. The project owner assumes potential loss if the property is sold at a lower price. You can find more details by scrolling up this page.
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: There is a risk that the asset can lose a tenant and it can take time to find replacements, which can have impact on the property's cash-flow.
|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 ability to repay liabilities in the past||-1 / A+|
|Property price comparison to a 3rd party valuation||0 / A|
|Property type||1 / B|
|Is there a tenant already||0 / A|
|Borrower's experience with rental properties||0 / A|
|Property occupany over the last 2 years (if it was rented)||2 / C|
|Will the property require renovation||2 / C|
|Micro-location||0 / A|
|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)||1 / B|
|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:||8 / 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.
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 vacancies, the borrower is required to distribute fixed-interest payments, which protects your bottom line.