Reasons to invest in the project Floatel, Vilnius VII:
The incredible location of the property – next to the Gediminas Castle and Vilnius Cathedral;
The company has all the applicable permits and approvals from the Municipality to establish such a hotel;
Unique buy-to-let project with – Timeshare;
Interest is paid monthly with an attractive annual return of 8.23% – 8.75% and fixed annual return on capital gains: +2% (payable at the end of the project);
The maximum LTV of the whole project has become more attractive at – 66%;
The additional collateral has been appraised by an independent valuer at EUR 539,000, bringing the total value of the collateral for the entire project to EUR 1,929,000 (see the Property Appraisal for more details).
InRento team presents the seventh stage of the unique buy-to-let project – Floatel, Vilnius VII. The investment offer consists of a three-storey hotel on the water with apartments and a restaurant next to the King Mindaugas Bridge in Vilnius. Currently, this project is finishing furnishing at the winter port of Žirmūnai district in Vilnius.
The project consists of 23 apartments on the first and second floors of the hotel, focused on short-term rentals, and a rooftop terrace-restaurant on the third floor with a great view of Gediminas Castle and the Vilnius Cathedral.
This project is unique in Lithuania – this type of concept is quite popular in many cities around the world due to the attractiveness of the location, as hotels on the water can be built in places where land is not available or where it would be extremely expensive to buy or rent. As a result, higher rental yields can be expected compared to traditional hotels.
This type of project has not only financial but also cultural significance, as unique experiences increase the attractiveness of the city for both residents and tourists.
The owner of the project, Karolis Paulauskas, has over ten years of experience with floating constructions and the oil industry. The planned price of the apartments is EUR 65 per night in high season, with an average occupancy rate of 75%, and EUR 45 in low season, with an occupancy rate of 40%. The rent per square metre of the terrace will be EUR 11.
The purpose of this additional stage of financing is to complete the interior fit-out, while maintaining the quality of the planned quality. As a reminder, the buildings and land located in the prestigious location of Užupis district in Vilnius have already been mortgaged for EUR 1,390,000. For the financing of this phase, an additional pledge of EUR 539,000 will be provided, which will bring the total mortgaged assets value of the project to EUR 1,929,000.
Investors will be paid a fixed interest rate of 8.23% – 8.75% per annum, depending on the amount invested, every month. This project also has a fixed annual capital growth rate of 2%, payable at the end of the project. This raises the total yield for this phase to between 10.23% and 10.75% annual return.
The project also has a Timeshare, those investing from EUR 5,000 and up will have the opportunity to book a night's accommodation and stay for free in the Floatel. More information below.
The project owner is already successfully paying interest to investors for the first stages of the project. The mortgage for this project has already been signed, so the interest for this stage will start to accrue to the investors as soon as the money is actually disbursed to the project owner.
The planned opening date of the Floatel is the Q2 of 2024.