Z8, Vilnius II

Vilnius

Available for funding: €0

€100 000

175 investors

The annual return indicates the fixed-interest rate, or what investors shall earn in percentages. Percentage may depend on amount of the investment. To see specific returns please enter investment amount above. Annual fixed-return rate: 7.12% - 7.62%

This number indicates what part of the profit share you would earn when the property is sold for profit or fixed annual capital gains that would be paid when project is realised. More information can be found by scrolling below the project description. Capital Gains: 30% – 50% from profit

Shows amount you've entered for amount of your investment above. Minimum investment amount is EUR 500. Invest:: -

Shows amount that you are expected to earn during one year of investment. Earnings are automatically calculated when you enter the investment amount above. Earn:: -

Total expected earnings: Total expected earnings:: -

Security indicates the measures that are being taken to secure your investment. Mortgage means the funds of investors are secured by mortgaging the asset in the name of investors. In case of project owner's default the mortgage of the asset would be used to recover principal investment of investors. Security:: 1st-rank Mortgage

Investment rating show the risk level assigned to the project. A = lowest risk, while D = highest risk. InRento risk scoring is based on factual data and its scoring model can be discovered transparently at the bottom of this page. Investment Rating:: B

Description
Project updates (1)

Reasons to invest in the project Z8, Vilnius II:

A hotel for rent in an attractive part of Vilnius city;

A long-term rental agreement until 2030 is concluded with the tenant;

Fixed attractive annual rental yield (7.12% – 7.62%);

A preliminary sale of the property in the future has been achieved, with an expected capital gains of EUR 93,000;

An independent appraiser valued the premises at 811,00 EUR (all stages max. LTV – 61%).

InRento presents the second and the last stage of the buy-to-let project: Z8, Vilnius II. The investment consists of a hotel located in an attractive part of the Vilnius city – between the Žvėrynas and Šeškinė districts, at the address: Želvos st. 8.

The hotel is rented out to the hotel operator – Studio Hotel, with whom a long-term rental agreement is signed and is valid until 2030. The facility is rented out to the operator for a fixed rent of EUR 4,000 per month. The maximum applicable interest amount for the project owner can reach up to EUR 3,140, which means that the rental income exceeds the interest paid to the investors.

The total area of the hotel is 567.96 m². It consists of 22 rooms that can accommodate up to 86 people at the same time. This cozy and modernly furnished hotel in the central part of the city has a private courtyard for rest and parking.

Investors will be paid a fixed annual interest of 7.12% – 7.62% depending on the invested amount. In this project, investors can earn from capital gains when the project is sold at a higher price. The share of investors' profit (capital gain) ranges from 30% to 50%.

This project is unique because it’s owner has already reached a preliminary agreement to sell this real estate object within 3 years for 588,000 EUR. A sale at this price would result in a capital gains of EUR 93,000, which would be split between the investors, the project owner, and InRento (more details below).

In this case, the total annual return of the project for investors would be 9% – 11.75%, depending on the invested amount.

2023-03-14

We would like to inform you that InRento has transferred the investors the share of the profit of InRento, which is distributed on the sale of the Project Assets. However, these changes will not have any effect on the profit amounts that could be distributed to the investors. Please find a detailed explanation below.

Previously, the investor’s profit share was set based on the investment amount:

Invested up to EUR 5,000 – 30%;
Invested from EUR 5,000 EUR (inclusive) up to EUR 15,000 – 35%;
Invested from EUR 15,000 EUR (inclusive) up to EUR 30,000 – 40%;
Invested from EUR 30,000 EUR (inclusive) up to EUR 50,000 – 45%;
Invested from EUR 50,000 EUR (inclusive) – 50%.

After InRento has transferred its share of the profit, all investors’ share of the profit is equal to 50%. However, based on the amount invested, an accounting fee may be applied:

Invested up to EUR 5,000 – 0.4;
Invested from EUR 5,000 (inclusive) up to EUR 15,000 – 0.3;
Invested from EUR 15,000 (inclusive) up to EUR 30,000 – 0.2;
Invested from EUR 30,000 (inclusive) up to EUR 50,000 – 0.1;
Invested from EUR 50,000 (inclusive) – 0 (investment terms have not changed).

In the case of this project, for a certain group of investors in case of profit payout, the net amount grows. Below you can find an example and comparison of how a payout of 100 EUR changes based on the previous and updated structure:

Previous structure:

Invested up to EUR 5,000 – payable profit 30 EUR = 30% * EUR 100;
Invested from EUR 5,000 (inclusive) up to EUR 15,000 – payable profit 35 EUR = 35% * EUR 100;
Invested from EUR 15,000 (inclusive) up to EUR 30,000 – payable profit 40 EUR = 40% * EUR 100;
Invested from EUR 30,000 (inclusive) up to EUR 50,000 – payable profit 45 EUR = 45% * EUR 100;
Invested from EUR 50,000 (inclusive) payable profit 50 EUR = 50% * EUR 100 (investment terms have not changed).

From now:

Invested up to EUR 5,000 – payable profit 30 EUR = 50% * EUR 100 * (1-0.4). The amount has not changed.
Invested from EUR 5,000 (inclusive) up to EUR 15,000 – payable profit 35 EUR = 50% * EUR 100 * (1-0.3). The amount has not changed.
Invested from EUR 15,000 (inclusive) up to EUR 30,000 – payable profit 40 EUR = 50% * EUR 100 * (1-0.2). The amount has not changed.
Invested from EUR 30,000 (inclusive) up to EUR 50,000 – payable profit 45 EUR = 50% * EUR 100 * (1-0.1). The amount has not changed.
Invested from EUR 50,000 (inclusive) payable profit 50 EUR = 50% * EUR 100 * (1-0.00). Investment terms have not changed.

We are introducing this fee in order to optimize and standardize the methodology of internal accounting procedures and resources, due to the reason the payable amounts and percentages range between projects. This is an operationally intensive process. Additionally, for every payment InRento facilitates, it pays service fees to payment services providers, and in order to ensure cash flow positive operations, a decision was taken to introduce a percentage based tariff on profit rather than gross project profit.

We would like to clarify that investors’ interest from a share of the profit to be distributed on the sale of the assets will be paid out net, which means all applicable fees will be deducted before payment.

Z8, Vilnius II

Reasons to invest in the project Z8, Vilnius II:

Invest in Z8, Vilnius II,Lithuania

Invest in Z8, Vilnius II,
Lithuania